Lead: The domestic diethylene glycol market has seen its price center strengthen recently. As of May 21st, the market price in East China reached 7,015 yuan/ton, up 371 yuan/ton from the previous week, an increase of 5.56%.

Destocking coupled with firm demand support boosts spot price center

During this period, amid heightened tensions in the Middle East, oil prices continued to strengthen. Port arrivals were low, leading to a significant drawdown in major port inventories. Driven by a tight supply pattern, the market center strengthened this week. However, downstream orders were unsatisfactory, and the market lacked sustained momentum, leading to a return to rationality in market sentiment. This week, the domestic diethylene glycol market rose rapidly before narrowing its gains.

Imports remain at low levels; port inventories continue to decline

This Monday, the diethylene glycol port inventory in East China stood at 16,200 tons, a decrease of 4,900 tons compared to the previous week. Among this, Zhangjiagang Yangtze River International accounted for 10,000 tons, and Fubao accounted for 6,200 tons. From May 14th to May 20th, the total shipment volume from the Yangtze River International and Fubao warehouse areas, the main ports in East China, was 4,159 tons, with an average daily shipment of approximately 594 tons. Pre-arrival volumes at major East China ports remain low recently, and ports are expected to continue destocking.

In the short term, although overall downstream orders are weak and demand-side support is insufficient, there is little change in supply and demand fundamentals. Domestic supply is expected to contract further, pre-arrival volumes at ports remain low, port inventories are expected to continue destocking, and downstream feedstock inventories are not high. Therefore, the diethylene glycol market is expected to maintain a firm trend next week.

Top 5 Diethylene Glycol Representative Enterprise Operating Capacities:

| Enterprise Name | Capacity (10,000 tons/year) |
| --- | --- |
| Zhejiang Petrochemical | 19 |
| Shenghong Refining & Chemical | 15.5 |
| Satellite Petrochemical | 15 |
| Hengli Petrochemical | 15 |
| Zhenhai Refining & Chemical | 13 |