Market Trends:

On April 14, domestic diethylene glycol prices underwent a significant correction; spot prices in the mainstream East China market closed at 7,560 RMB/ton—down 140 RMB/ton. Dragged down by weak demand and the broader market correction, prices in the South China market softened, closing at 7,800 RMB/ton—down 200 RMB/ton.

Fundamental Analysis:

Supply: As of April 13, diethylene glycol (DEG) inventories at ports in the East China region stood at 27,900 tons, a decrease of 6,500 tons compared to the previous statistical period. This week (April 14–20), scheduled vessel arrivals of DEG at the Zhangjiagang storage area are estimated at 1,120 tons. With expected port arrivals remaining relatively low, downstream buyers are largely purchasing on an "as-needed" basis; consequently, shipment volumes from major ports remain stable, and DEG inventories at major East China ports are expected to continue their downward trend this week.

Demand: Downstream demand remains lackluster. According to statistics, the average operating rate at domestic unsaturated resin plants stood at 34% this week—an increase of 4.0% compared to the previous period. On April 13, total shipments from the two storage facilities in Zhangjiagang amounted to 963 tons, representing an increase of 38 tons over the previous day's shipments.

Costs: The situation in the Middle East remains fraught with instability. Following the failure of the initial U.S.-Iran talks, President Trump stated that Iran had reached out seeking to reach an agreement; the next round of negotiations between the two nations may take place on the 16th. Spurred by this news, international oil prices have declined.

Market outlook

Downstream market performance remains lackluster, with most buyers engaging in strictly needs-based procurement. However, recent arrivals at ports have been low, leading to a continued depletion of inventory at major ports in East China. Furthermore, given the numerous destabilizing factors in the Middle East and the high-level volatility of oil prices, the diethylene glycol market is expected to undergo a period of weak consolidation in the short term, with downstream buyers maintaining a cautious stance.

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