October 22nd, according to news,
Ethylene Glycol Market Situation in China
1. Ethylene glycol prices in China have stopped falling and are showing signs of recovery.
In 2026, the price of ethylene glycol saw a significant increase, with a substantial correction in October, followed by a recent stabilization. According to the data, as of October 22, the average spot market price for oil-based ethylene glycol among Chinese traders was 5758.33 CNY/ton, down 10.03% from the beginning of the month (October 1) when the average market price was 6400 CNY/ton. Recently, prices have started to stabilize and rise.
2. In October 2026, the port inventory of ethylene glycol in China slightly recovered, but the inventory remains extremely low:
On October 22, 2026, the total spot inventory of monoethylene glycol in the main ports of East China was 160,000 tons, a decrease of 256,000 tons from the total spot inventory of 416,000 tons on July 30, 2026, in the main ports of East China; and a decrease of 766,400 tons from the total spot inventory of 926,400 tons on March 2, 2026, in the main ports of East China.
Currently, the port inventory of ethylene glycol in China is extremely low, reaching a historical low for the same period.
In late September, port inventory once fell below 100,000 tons, leading to a severe shortage in the market, with spot premiums exceeding 1000 CNY/ton. With the National Day holiday, cargo collection at the ports came to a halt, while arrivals continued as usual. Coupled with high ethylene glycol prices, sales were mainly driven by rigid demand. The situation in the Middle East was relatively stable in mid-October, and market sentiment was released before the holiday. From the port inventory data, there has been a slight increase recently.
3. Downstream polyester demand during the peak season fell short of expectations in China
Currently, the peak season for downstream polyester of ethylene glycol in China has not met expectations. The overall operating rate of polyester has dropped to around 72.5%, significantly lower than the same period last year, with a notable drag from the bottle chip load. After the holiday, the weaving industry in Jiangsu and Zhejiang provinces has only seen a slight recovery, with order days less than 10. Foreign trade is weak, and companies are mostly purchasing as needed and being cautious about restocking. The demand for essential goods is weak.
Reasons for the Ethylene Glycol Price Correction in October
In October, the price of ethylene glycol declined, mainly due to a shift towards a more relaxed supply and demand balance: the resumption of production at Chinese facilities and the concentrated arrival of overseas supplies increased the supply. Meanwhile, the peak season for polyester, known as "Golden September, Silver October," did not materialize, with low polyester production rates and insufficient orders in the terminal weaving sector. Downstream demand was limited to rigid demand procurement, with weak pickup, leading to a rapid inventory accumulation at ports. The previous low inventory levels and geopolitical premium dissipated, and expectations of further inventory accumulation intensified, driving prices continuously lower.
Recently, ethylene glycol has stopped falling and started to recover in China.
Recently, ethylene glycol has stabilized and shown signs of recovery in China, mainly due to multiple bottom supports resonating after a rapid price decline.
First, following the release of price declines in the market, cost constraints have become apparent, narrowing the room for further downside. Second, with frequent attacks on tankers in the Strait of Hormuz and surrounding areas, geopolitical risk premiums have rebounded, pushing oil‑based costs to a higher absolute floor. Third, as ethylene glycol margins have been rapidly squeezed, some co‑production facilities have proactively adjusted their product mix and reduced ethylene glycol output, amid growing expectations of further production cuts. Fourth, the earlier inventory‑buildup headwinds have largely played out—port inventories have risen swiftly from 100,000 tons to 180,000 tons—partially unwinding negative feedback; however, absolute inventory levels remain relatively low, weakening the momentum for continued short‑selling.
