Price trend

On March 24, the domestic diethylene glycol market trended upward. In the mainstream spot market, prices in East China closed at 5,900 RMB/ton—an increase of 160 RMB/ton. The South China market mirrored this strength; driven by tight regional supply, prices in the area closed at 6,150 RMB/ton—up 250 RMB/ton.

Fundamental Analysis:

Supply: As of March 23, port inventories of diethylene glycol (DEG) in the East China region stood at 44,100 tons, a decrease of 7,900 tons compared to the previous statistical period. This week (March 24–30), scheduled DEG arrivals at Zhangjiagang are estimated at 5,000 tons; with anticipated arrivals declining, downstream recovery proceeding slowly, and port shipments remaining stable, inventories at major East China ports continued their downward trend this week.

Demand: Downstream performance fell short of expectations, resulting in insufficient momentum for chasing price rallies. According to statistics, the average operating rate at domestic unsaturated resin plants stood at 37% this week—a decline of 1.0% compared to the previous period. On March 23, total shipments from the two storage zones in Zhangjiagang amounted to 1,314 tons, representing an increase of 191 tons over the previous day's shipments.

Costs: The situation in the Middle East has prompted several oil-producing nations to significantly cut production, and reports suggesting the U.S. may deploy additional ground troops have heightened supply risks. International oil prices initially declined as market anxieties eased following U.S. claims of positive progress in peace talks with Iran; however, prices subsequently rebounded after Iran denied these claims.

Market Outlook

This week, supply volumes contracted slightly; amidst heightened tensions in the Middle East and continued supply disruptions, inventories at major ports are expected to undergo further depletion. However, the demand side remains resistant to high price levels, and the market lacks sustainable driving forces; consequently, the Monoethylene Glycol (MEG) market this week maintained a pattern of firm yet volatile fluctuations, with downstream buyers adopting a cautious procurement stance.

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