On June 10, supply remained tight and market price levels held firm, with only sporadic quotes in the spot market. Spot prices in major markets closed at 7,160 RMB/ton in East China (up 40 RMB/ton) and 7,300 RMB/ton in South China (up 50 RMB/ton); the CFR China price closed at $874/tonne (up $6/tonne).

Fundamental Analysis:

Production Units: Hainan Refining & Chemical's 800,000-ton ethylene glycol/diethylene glycol (EG/DEG) unit began a maintenance shutdown over the weekend, with the work expected to last until November. Zhejiang Petrochemical's 750,000-ton EG/DEG unit commenced a scheduled maintenance shutdown yesterday, anticipated to last approximately 10 days. Sinopec Wuhan's 280,000-ton/year EG/DEG unit also shut down for maintenance last weekend. Meanwhile, individual units in Iran, as well as three units operated by Taiwanese firms and Petronas, have restarted, signaling a resumption of operations for facilities that had previously experienced short-term shutdowns due to feedstock issues.

Supply: Domestic plants are operating at low rates in the short term, and there has been no substantial progress regarding deep-sea cargo arrivals; overall supply remains tight. As of June 8, port inventories of diethylene glycol (DEG) in East China stood at 12,600 tonnes, an increase of 600 tonnes from the previous reporting period. There are no scheduled DEG arrivals at Zhangjiagang port this week (June 9–15). Downstream orders remain lackluster, with purchasing driven primarily by immediate needs, and major ports in East China are expected to continue seeing inventory drawdowns.

Demand: Downstream polyester and unsaturated resin sectors are both operating at low capacity utilization rates. Statistics indicate that as of June 4, the average operating rate of domestic unsaturated resin plants stood at 32%, remaining unchanged from the previous period. Manufacturers are purchasing raw materials on an as-needed basis; data shows that total shipments from the two storage zones in Zhangjiagang amounted to 637 tonnes between June 5 and June 7, averaging 212 tonnes per day. On June 9, total shipments from these zones reached 367 tonnes—an increase of 11 tonnes from the previous day—reflecting a further contraction in terminal pickup activity.

Market Outlook

Currently, the diethylene glycol (DEG) market is characterized by weak supply and demand, with prices primarily driven by downstream consumption—particularly the sluggish demand in both northern and southern regions. In the short term, the market reflects a "strong spot/weak outlook" dynamic, with prices experiencing wide fluctuations driven by market sentiment; the spread between near-term and forward prices is expected to widen further. Key factors to monitor include the extent of downstream demand follow-through, the impact of ceasefire negotiations on the actual openness of the Strait of Hormuz (affecting crude oil and import shipment efficiency), and the progress of restoring overseas production facilities following disruptions.

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