Price trend

On April 21, domestic diethylene glycol prices underwent a significant correction; spot prices in the mainstream East China market closed at 7,080 RMB/ton—a decline of 320 RMB/ton. Although supply in the South China region remained tight, prices there were dragged down by the downward pressure in the mainstream market, with quotes falling in tandem to close at 7,400 RMB/ton—a drop of 250 RMB/ton.

Fundamental Analysis

Supply: As of April 20, diethylene glycol (DEG) port inventories in the East China region stood at 21,700 tons, a decrease of 6,200 tons compared to the previous statistical period. This week (April 21–27), there are no scheduled vessel arrivals for DEG at the Zhangjiagang storage area. Downstream market performance has fallen short of expectations; however, with port inventories having dropped to low levels, cargo holders show little inclination to offload stock. Consequently, shipment volumes from major ports may decline, and inventories at East China's main ports are expected to continue their downward trend this week.

Demand: Downstream market performance fell short of expectations; buyers remained resistant to high prices and largely limited their purchases to immediate needs. According to statistics, the average operating rate at domestic unsaturated resin plants stood at 38% this week—an increase of 4.0% compared to the previous period. On April 20, the total shipment volume from the two warehouse zones in Zhangjiagang amounted to 833 tons, representing a decrease of 329 tons compared to the previous day.

Costs: The situation in the Middle East remains fraught with instability; the second round of U.S.-Iran talks is still shrouded in uncertainty, and there has been no progress regarding the reopening of the Strait of Hormuz. However, the geopolitical risk premium has receded, paring back some of the recent gains; prices for the two major crude oil futures benchmarks have retreated to hover around the $90 per barrel mark, resulting in diminished cost support.

Market Outlook

Downstream performance has fallen short of expectations, and buyers remain resistant to high raw material prices, largely limiting their purchases to immediate needs. However, with no vessel arrivals scheduled for this week—and consequently, expectations of continued inventory depletion at major ports in East China—the supply landscape is expected to remain tight, exacerbated by significant instability in the Middle East. In the short term, the diethylene glycol market is likely to remain volatile, with downstream buyers maintaining a cautious procurement stance.

SunSirs has been continuously tracking price data for over 200 commodities for nearly 20 years, please contact support@sunsirs.com for subscription.