August 27 news
August ethylene glycol prices surged in China
In August 2026, the price of ethylene glycol saw a significant increase. According to the data, as of August 27, the average spot market price for oil-based ethylene glycol among Chinese traders was 5,628.33 CNY/ton, up 12.30% from the market average of 5,011.67 CNY/ton on August 1.
Port paper ethylene glycol prices are mainly based on basis pricing, closely following the fluctuations of the futures market. In August 2026, the futures price of ethylene glycol in China saw a significant increase, and the basis price of port paper ethylene glycol remained firm. Recently, the market has seen a decline, with the basis slightly decreasing, but the absolute price remains high. As of the 27th, for the port ethylene glycol spot contracts (starting from 500 tons), the intra-day basis quotes for this week's spot contracts have been operating within the range of +400 to +460. (Currently, the market basis is still benchmarked against the September contract.)
The price of spot coal-based polyester-grade ethylene glycol in China (bulk, tax included, self-pickup) is 4200-4450 CNY per ton. Currently, manufacturer quotes are relatively high, and traders who stockpiled earlier can sell at lower prices for substantial profits.
Ethylene glycol port inventory at an extremely low level as of August 2026:
On August 27, 2026, the total spot inventory of monoethylene glycol in the main ports of East China was 178,000 tons, a decrease of 238,000 tons from the total spot inventory of 416,000 tons on July 30, 2026, in the main ports of East China.
Reasons for the significant increase in ethylene glycol prices in August 2026:
1. Supply Reduction: Several major ethylene glycol production facilities in China experienced unexpected shutdowns, leading to a decrease in supply. 2. Increased Demand: The demand for ethylene glycol in China's polyester and antifreeze industries surged, driven by seasonal factors and economic recovery. 3. Raw Material Costs: The price of raw materials, such as ethylene, increased, raising the production costs for ethylene glycol. 4. Logistical Issues: Transportation disruptions in certain regions of China affected the timely delivery of ethylene glycol, further tightening the supply. 5. International Market Influence: Global market conditions, including higher import prices and reduced imports, also contributed to the price increase.
In August 2026, the price of ethylene glycol rose significantly, mainly due to the impact of geopolitical conflicts in the Middle East, which led to a noticeable reduction in imports. Additionally, multiple facilities in China underwent concentrated maintenance, tightening overall supply. The inventory in the main ports of East China dropped to its lowest level in recent years, with tight spot availability. At the same time, the increase in crude oil costs added risk premiums. The market anticipated the demand for polyester during the peak season of September and October, collectively driving the substantial price increase.
The reasons for the recent significant drop in ethylene glycol prices in China:
Recent ethylene glycol prices have significantly dropped, mainly due to the easing of geopolitical tensions in the Middle East. The previous risk premium from geopolitical risks has quickly dissipated, and the decline in crude oil prices has weakened cost support. In China, maintenance facilities are gradually restarting, and the market expects that imported supplies will arrive in September, increasing future supply pressure. At the same time, the "Golden September, Silver October" peak season did not meet expectations, with high prices suppressing the purchasing willingness of downstream polyester producers. Some companies have reduced production, and the concentration of profit-taking after the previous price surge has also contributed to the rapid price correction.
Future Market Prediction:
In September, ethylene glycol is likely to experience high-level fluctuations with increased volatility. The main theme of the fundamentals remains a tight supply, with the largest variable in price fluctuation being the geopolitical factors affecting the volume of arrivals in China.
On the supply side, Chinese maintenance facilities are gradually resuming production. If navigation through the Middle East strait improves, imports arriving at ports will increase month-over-month, raising the supply pressure. However, the inventory at East China ports remains at historically low levels, providing some support to the spot market.
On the demand side, polyester is entering the traditional "Golden September and Silver October" period, and plant start-ups are expected to see a slight rebound. However, overall end-customer orders remain weak, with high prices discouraging downstream companies from proactively stocking up. As a result, procurement is largely driven by rigid demand, limiting the extent to which peak-season demand can be fully realized.
Geopolitical and crude oil fluctuations will still bring emotional disturbances. If geopolitical tensions rise again, it is easy to see a rebound. If the supply is concentrated at ports or if the peak season does not meet expectations, there is a risk of further correction. Overall, it presents a pattern of tightness in the near term and easing in the long term.
