March 2nd News — The South Korean government has officially approved the restructuring of Lotte Chemical and HD Hyundai Chemical’s Daesan complex, investing 2.1 trillion won to support industry self-rescue. The shutdown of million-ton ethylene units is planned, with a nationwide reduction of ethylene capacity by 2.7–3.7 million tons. Northeast Asia’s cracking market is undergoing a critical supply-side adjustment. Chempricehub Analysis: Ethylene, Bull-Bear Score: 1.5 South Korea plans to reduce ethylene capacity by 2.7–3.7 million tons. The supply reduction is expected to drive up spot ethylene prices. The supply-side adjustment in Northeast Asia’s cracking market may lead to regional supply tightness, supporting price increases. Ethylene Glycol, Bull-Bear Score: 1.5 As ethylene is a primary raw material for ethylene glycol, reduced supply will increase production costs and push up spot ethylene glycol prices. Combined with the recent upward trend in ethylene glycol futures (e.g., the 2605 contract closing at 3,925 yuan/ton, up 95 yuan), this event may reinforce bullish sentiment, with futures prices likely to rise further.