China EG market trend
In the ethylene glycol (EG) market in China, supply/demand tightness might ease, and prices might soften in the quarter from October to December.
Since October, inventories of EG at ports have risen. In addition, new EG facilities are scheduled to start up in the quarter.
On the other hand, derivative makers are wary of high EG prices. Although it is the winter demand season, orders from end-product makers are sluggish. Polyester makers' operating rates are about 77%, lower than normal years. Since feedstock costs are remaining high, profitability is worsening.
Going forward, prices might decrease slightly. As supply is not ample, the market is unlikely to fall sharply.
EG facility turnaround
|
EG facility operations |
|||
|
Maker |
Region |
Capacity (kt) |
Period |
|
Shenhua Yulin |
Yulin |
400 |
From Oct 8 for 40 days |
|
Henan Longyu |
Henan |
400 |
From end-Oct for 25 days |
|
Ningxia Changyi |
Ningxia |
200 |
From end-Oct for 20 days |
|
Sabic Gulei |
Fujian |
1,000 |
To start commercial operations at end- Nov |
|
Aramco Huajin |
Panjin |
350 |
End 2026 to early 2027 |
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