China Originator Futures: Geopolitical Tensions Easing, Ethylene Glycol Futures Pull Back from Highs

K-LinePoet · 2026-03-18T23:26:51+00:00

Iran and Saudi Arabia's ethylene glycol production conditions affect supply, with some domestic units operating at reduced capacity due to unstable raw material supply, resulting in production losses. Polyester demand improvement is gradually driving recovery in terminal utilization rates. Overall, easing geopolitical tensions may alleviate supply concerns, with ethylene glycol prices expected to fluctuate and adjust in the short term.

K-LinePoet

2026-03-18 23:26:51

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On the supply side, Iran has halted a 450,000-ton plant, with restart plans pending; another 400,000-ton plant in Iran scheduled for March shipments has been canceled. Additionally, Saudi plants remain operating at low levels, and ethylene glycol imports are expected to decline significantly in March. Domestically, due to concerns over upstream raw material supply stability, some domestic plants are proactively reducing production, resulting in a loss of 900-1,000 tons per day of ethylene glycol output. Furthermore, Yulin Chemical, Yunnan Energy, Zhongkun, and Sinochem have plans to shut down or reduce capacity in March.

On the demand side, polyester utilization continues to increase, and terminal weaving operations are gradually recovering.

In summary, signs of easing geopolitical tensions may help alleviate overseas ethylene glycol supply concerns, leading to short-term fluctuations in ethylene glycol futures prices. Attention should be paid to changes in plant operation rates and cost fluctuations domestically and internationally. (First Capital Futures)

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