Lead: Downstream order activity remains tepid, lacking momentum for market rallies. However, domestic supply is tight, port arrivals are low, and inventories at main East China ports continue to decline. With US-Iran negotiations stalled, international oil prices have rebounded strongly, easing commodity sentiment. Recently, the diethylene glycol market has been recovering from lows.

Downstream unsaturated resin and polyester sectors are performing sluggishly. Polyester operating rates have dropped to historical lows, while capacity utilization of unsaturated resins also remains low. Overall purchasing sentiment is weak, with buyers mainly procuring on a need-to basis. On the other hand, domestic supply continues to shrink, and tensions in the Middle East keep imports low. Inventories at East China main ports continue to hit fresh historical lows. Under the tug-of-war between tight supply and weak demand, the market has largely entered a stalemate.

Recent Domestic Ethylene Glycol Unit Maintenance Schedule

Unit: 10,000 tons/year

| Producer | Capacity | Start Date | End Date | June Maintenance Days | Reason |
| --- | --- | --- | --- | --- | --- |
| Sinopec Shanghai Petrochemical #1 | 2.3 | Switching to EO | / | / | Economics |
| Sanjiang Chemical #1 | 3.8 | 2025.5.27 | To be determined | 30 | Economics |
| Shenghong Refining #1 | 8 | 2025.12.4 | End of Q2 2026 | 30 | Planned |
| Satellite Chemical | 7.5 | 2026.2.11 | To be determined | 30 | Product Switch |
| Fujian Gulei | 6 | 2026.3.6 | Restart delayed to May | 30 | Planned |
| Zhejiang Petrochemical | 6.5 | 2026.4.21 | To be determined | 30 | Economics |
| Far Eastern Union (Yangzhou) | 4.5 | 2026.5.20 | Planned 40-day maintenance | 30 | Economics |
| Sinopec Yangzi Petrochemical | 3 | 2026.5.15 | To be determined | 30 | Planned |
| Ningbo FuDe | 7 | 2026.5.26 | 10 days | 6 | – |
| Hainan Refining & Chemical | 6.5 | 2026.6.5 | November | 25 | Planned |
| Zhejiang Petrochemical | 6 | 2026.6.8 | 10 days | 10 | Planned |
| Total | 61.1 | -- | -- | -- | -- |

Source: chempricehub

In June, Hainan Refining & Chemical and Zhejiang Petrochemical Line 1 still have maintenance plans, suggesting a continued contraction in domestic supply. As for imports: the Strait of Hormuz is not fully open. The Middle East, being the largest import source, is most affected, and the risk of supply disruption remains. Based on expected arrivals at major ports, pre-arrival volumes are still low, suggesting main port inventories may continue to hit new historical lows.

In the short term, the domestic supply of diethylene glycol remains tight, imports stay at low levels, and the situation is difficult to ease quickly. Main East China port inventories remain low. Downstream demand performance has fallen short of expectations, lacking momentum for chasing price increases. The short-term East China diethylene glycol market is expected to remain range-bound with a firm tone.