ShouChuang Futures: Marginal improvement in supply and demand, ethylene glycol futures remain strong

K-LinePoet · 2026-03-27T01:10:21+00:00

The shutdown and reduced operation of ethylene glycol facilities in Iran and Saudi Arabia have led to tight supply, exacerbating domestic production losses. However, polyester demand is recovering, and capacity utilization is increasing. Overall, the ethylene glycol supply and demand are marginally improving, and short-term prices are expected to be relatively strong. Attention should be paid to changes in facilities and costs.

K-LinePoet

2026-03-27 01:10:21

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On the supply side, Iran’s one 450,000-ton plant is shut down, with restart plans pending; another 400,000-ton plant in Iran canceled its March shipment schedule. Additionally, Saudi facilities 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 plants are proactively reducing production, resulting in a loss of 900-1000 tons per day of ethylene glycol output. Furthermore, plants such as Yulin Chemical, Yumen, Zhongkun, and Sinochem have plans to shut down or reduce production in March.

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

In summary, the supply and demand of ethylene glycol are marginally improving. In the short term, ethylene glycol futures are expected to remain relatively strong, with attention to changes in plant operation rates and costs domestically and internationally. (First Capital Futures)

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