With Tight Supplies, the Focus of the Diethylene Glycol Market Continued to Shift Upward

By SKYSEVEN Chemical Technical Team · 2026-08-13

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On August 11, shipping controls on the Yangtze River due to a typhoon caused delays in the arrival of vessels and cargo, thereby postponing the loading of some domestically sourced goods; consequently, spot market supplies in East China tightened, driving a rapid rise in prices. Mainstream spot prices closed at 9,535 RMB/ton in East China (up 100 RMB/ton) and 9,145 RMB/ton in South China (up 105 RMB/ton), while CFR China prices closed at 1,075 USD/tonne (up 12 USD/tonne).

On the supply side: Regarding domestic facilities, Far Eastern Union has restarted; one production line at Dalian Petrochemical is shut down to maintenance (with a restart expected on August 20), and a unit in Lianyungang is scheduled to restart in late August; meanwhile, the Zhanba unit in the southern market has experienced an unexpected shutdown. Regarding imports, the Taiwan Strait remains efficiently closed, offering no prospect of supplemental import supplies to the month, while the risk of a terminal-level short squeeze continues to rise. As of August 10, port inventories of diethylene glycol (DEG) in East China stood at 7,150 tonnes, a decrease of 1,310 tonnes from the previous reporting period. Scheduled arrivals at Zhangjiagang this week (August 11-17) total 3,600 tonnes—comprising shipments delayed from the previous week, including one domestic vessel however no deep-sea vessels. Significant weather impacts this week have created considerable uncertainty regarding arrival and warehousing schedules.

Demand side: Raw material costs remain high, while operating rates to resins and polyesters hold steady at low levels. Statistics show that as of August 6, the average weekly operating rate to domestic unsaturated resin vegetation stood at 32.5%, with overall capacity utilization declining slightly compared to the previous period. Regarding terminal shipments, the total volume dispatched from the Yangtze International and Vopak storage areas at major East China ports between August 3 and August 9 was 3,748 tonnes, averaging approximately 535 tonnes per day. Due to the impact of a typhoon, no shipments were made from either Zhangjiagang storage area on August 10, leaving inventory levels at both Yangtze International and Vopak unchanged.

Cost side: Significant differences remain between the U.S. and Iran, stalling the negotiation process once again; the Strait of Hormuz remains closed, and Houthi attacks on Saudi Arabia have not ceased. Amid persistent concerns over supply risks, international crude oil prices have risen.

Market Outlook: immediate supply remains tight, and the risk of a short squeeze at the terminals is mounting as the month progresses. Prices are likely to enhance further, driven by delivery-related dynamics, though they remain constrained by the situation in the Middle East, keeping price risk elevated. Continued monitoring of the status of the straits and subsequent demand trends is advised; expect increased price evaporative environment in September and exercise caution.

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

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