Port inventory has hit a new historical low, and the diethylene glycol (DEG) market continues to maintain its strong momentum.

Recently, the diethylene glycol market has shown a firm performance. As of July 2nd, the average weekly price of diethylene glycol in East China stood at 7,905 RMB/ton, up 148 RMB/ton from the previous week, an increase of 8.87%. During the period, a previously idled unit in East China was restarted, leading to a slight increase in domestic supply. Tensions in the Middle East have eased, and navigation through the Strait of Hormuz continues to improve. Declining oil prices have weighed on commodity sentiment, causing spot diethylene glycol prices to fall significantly mid-week. However, port arrivals were scarce, and port inventories hit a historic low. With tightening spot supply in the East China market and support from downstream just-in-time demand, the domestic diethylene glycol market oscillated and strengthened this week.

Data source: chempricehub

Recently, the inventory at the main East China port has continued to decline, once again hitting a historic low of 0.74 thousand tons. Spot supply remains tight, shifting the market to a seller's market. According to the data, only 1,000 tons of imported cargo are expected in the coming week, with port pre-arrivals still low. Considering recent port shipment volumes, main port inventories are expected to continue declining.

Data source: chempricehub

It is expected that port pre-arrivals will remain low next week, and main port inventories may continue to decrease. Spot supply will remain tight. However, oil prices continue to weaken, commodity sentiment is subdued, and downstream orders are not satisfactory. After the sustained strength, downstream purchasing enthusiasm has been hindered. Next week, the diethylene glycol market may face downward pressure. The operating range for East China spot prices next week is expected to be 7,400-8,000 RMB/ton.

Top 5 representative diethylene glycol producers by operating capacity: