June 26th, news:
June ethylene glycol prices in China fell.
In June 2026, the price of ethylene glycol fell. According to data, as of June 26, the average spot market price for oil-based ethylene glycol traders in China was 4,438.33 CNY/ton, a decrease of 6.95% from the average price of 4,770 CNY/ton on June 1.
The spot prices of ethylene glycol at ports are primarily priced based on basis differentials, with prices closely following fluctuations in the futures market. In June 2026, ethylene glycol futures experienced a significant drop, leading to a noticeable increase in port-based ethylene glycol basis differentials. As of the 26th, the daily basis differential for today’s spot contracts (starting at 500 tons) ranged from +159 to +163. For next week’s contracts (before July 3), the basis differential was quoted between +161 and +165; for the July contract, it ranged from +159 to +165; and for the August contract, it ranged from +105 to +115.
The spot price of coal-based polyester-grade ethylene glycol in China (bulk, tax included, self-pickup) for factory pickup is 3830-4050 CNY/ton. The self-pickup price in the northwest production area is discounted by 300-500 CNY/ton compared to the main consumption areas in the eastern part of China.
June 2026: Changes in Ethylene Glycol Port Inventory:
On June 25, 2026, the total spot inventory of monoethylene glycol in the main ports of East China was 549,000 tons, a decrease of 57,000 tons from the total spot inventory of 606,000 tons on June 1, 2026, in the main ports of East China.
Brief Explanation of the Reasons for the Decline in Ethylene Glycol Prices in June 2026:
In June 2026, the price of ethylene glycol generally declined. On one hand, the easing of international geopolitical tensions led to a weakening in crude oil and naphtha prices, reducing the production cost of oil-based ethylene glycol, and the previous premium from geopolitical speculation gradually dissipated. On the other hand, it was the traditional off-season for polyester demand. Downstream polyester production was weak, with high finished goods inventory, and there was a lack of orders in the weaving sector. Enterprises were only making rigid demand procurement, resulting in weak support for raw material demand. At the same time, the market's expectation of increased supply from the return of Middle Eastern cargoes and higher import arrivals began to take effect, leading to the withdrawal of long positions, which collectively drove the continuous decline in ethylene glycol prices.
Reasons why the ethylene glycol market in China may stabilize after a decline in June 2026:
In June 2026, after the decline in ethylene glycol prices, there is a potential for stabilization. On the supply side, multiple ethylene glycol plants in China underwent concentrated maintenance, reducing monthly output. The navigation rhythm through the Strait of Hormuz remains uncertain, and it is difficult for Middle Eastern imports to return significantly in the short term. The inventory at the main ports in East China has continued to fall to the lowest levels in recent years, leading to tight spot circulation and a stronger basis, which supports the price. On the cost side, the cash cost of coal-based ethylene glycol has formed a clear bottom range. As prices continue to fall, the losses from oil-based production have further increased, further limiting the downward space. Although demand is in the traditional off-season for polyester, downstream finished goods inventories are gradually being digested. The expectation for inventory buildup ahead of the textile "Golden September, Silver October" season in July and August is gradually warming up, and companies' willingness to purchase at low prices is marginally improving. Additionally, with the full release of previous geopolitical pessimistic premiums and the exit of short-selling funds, multiple factors are resonating to push the ethylene glycol market to gradually stabilize and form a bottom.
