In July, ethylene glycol prices first rose and then fell, forming an inverted “V” pattern. In the early stages, driven by anti-involution sentiment and an upward trend in commodity prices, ethylene glycol prices rose steadily. From a fundamental perspective, in mid-July, market rumors of ethylene glycol prices being affected by Zhejiang Petrochemical’s EG load reduction, Shenghong CDU issues, unscheduled maintenance at Singapore Shell, delayed Saudi Arabian shipments, satellite’s August PE but not EG, and the suspension of another satellite cracking line in August created relatively positive expectations for ethylene glycol supply. Combined with low port inventory data and a sharp rebound in raw coal prices, the combined effects led to a significant increase in ethylene glycol prices.
Ethylene glycol may fluctuate weakly in August
Negative Factors for Ethylene Glycol in August
1. Saudi Arabian plants have restarted, easing concerns about overseas supply. Although current arrival and import data are relatively low compared to the same period, a turning point is approaching, and import arrivals will gradually recover.
2. Domestic and foreign ethylene glycol plants have slightly increased their load, and expectations for a supply recovery are strong.
3. Domestic demand (end-use demand) is traditionally off-seasonal in July and August, and ethylene glycol is in its off-season, so demand is expected to be weak.
Positive Factors for Ethylene Glycol in August
1. MEG inventories are low in the short term. Although there is an expectation of inventory accumulation, they remain low overall from July to September, and supply and demand are relatively balanced.
2. Although the overall anti-involution sentiment has been interrupted recently, the trend remains.
Post time: Aug-01-2025