Shouchuang Futures: Supply and demand expectations lead to inventory reduction, supporting the ethylene glycol futures prices

K-LinePoet · 2026-03-28T06:03:36+00:00

Due to raw material shortages, domestic ethylene glycol producers are operating at lower rates, with an estimated loss of over 1,000 tons per day, while overseas facilities are reducing supply by shutting down. On the demand side, polyester operating rates are recovering, and it is expected that 550,000 tons will be destocked from March to May. Ethylene glycol futures may remain strong. Attention should be paid to changes in operating rates and costs.

K-LinePoet

2026-03-28 06:03:36

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In terms of supply, due to a shortage of raw material supply, the operating rate of domestic ethylene glycol production from ethylene cracking enterprises has been significantly reduced, with expected ethylene glycol production losses exceeding 1,000 tons per day. In addition, several coal-to-ethylene glycol plants have planned shutdowns or reduced operations in March. On the international front, certain facilities in Iran are either shutting down or suspending exports, and Saudi facilities are maintaining low operating rates, leading to an expected significant decline in ethylene glycol imports in March.

On the demand side, polyester load continues to rise, and terminal weaving operations are gradually recovering. It is expected that from March to May, a total of 550,000 tons of ethylene glycol will be withdrawn from inventory.

In summary, with increased maintenance of domestic and foreign facilities, tightening supply, and rising export expectations, it is estimated that inventory will continue to be withdrawn from March to May. The ethylene glycol futures price is expected to maintain a strong pattern, focusing on multiple ethylene glycol short PTA cross-variety arbitrage, and paying attention to changes in domestic and foreign facility operations and cost fluctuations. (CICC Futures)

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