Recently, the market price of diethylene glycol has been on a continuous rise. As of June 25, the market price of this product in East China reached 7,960 yuan/ton, up 644 yuan/ton week-on-week, with a cumulative monthly increase of 15.68%.

The recent price increase of this product is mainly due to the sustained reduction in supply. Currently, the overall domestic capacity utilization rate is around 40%. The tense situation in the Middle East has led to a continuous decline in imports. As of now, the inventory at the main port in East China has dropped to a historical low of only 8,600 tons.

On the demand side, the overall operating rates of industries such as polyester and unsaturated resins are not high, but raw material inventories are also at low levels, limiting downstream absorption capacity. Low inventories have led to tight spot market liquidity, keeping spot prices firm.

In the short term, the diethylene glycol market may gradually face pressure. Supply-side increases are limited, but the Strait navigation may somewhat alleviate the supply tightness. Additionally, downstream demand support is limited, and the market needs to digest the sustained price increases. It is expected that the subsequent diethylene glycol market will mainly experience volatile corrections.

Top 5 Operating Capacities of Representative Diethylene Glycol Enterprises:

| Enterprise Name | Capacity: 10,000 tons/year |
|----------------|----------------------------|
| Zhejiang Petroleum and Chemical | 19 |
| Shenghong Refining | 15.5 |
| Satellite Petrochemical | 15 |
| Hengli Petrochemical | 15 |
| Zhenhai Refining | 13 |