ShouChuang Futures: Raw material shortages trigger a production cut wave, and ethylene glycol futures remain strong

K-LinePoet · 2026-04-03T17:29:06+00:00

Due to raw material supply shortages, many domestic ethylene glycol plants have significantly reduced their operating rates, with an estimated daily loss of over 1,000 tons. Meanwhile, overseas facilities have shut down or operated at low capacity, leading to a decline in imports. Although polyester demand has rebounded somewhat, the overall market is affected by geopolitical conflicts, and ethylene glycol prices are expected to remain in a relatively strong range.

K-LinePoet

2026-04-03 17:29:06

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On the supply side, due to shortages in raw material supply, the operating rates of domestic ethylene cracking-to-ethylene glycol plants have been broadly reduced. Ethylene glycol units in Zhejiang, Jiangsu, Hainan, Fujian, and other regions have all seen declines to varying degrees. It is expected that ethylene glycol output losses will exceed 1,000 tons/day. In addition, plants such as Yulin Chemical, Yumei, Zhongkun, and Sinochem have plans to either shut down or reduce load in March.

On the overseas side, a 450k-ton unit in Iran has been shut down, with a restart pending; another 400k-ton unit in Iran has had its March cargo shipment plan canceled. In addition, Saudi units have been operating at a low level, and it is expected that ethylene glycol import volumes in March may decline noticeably.

On the demand side, polyester operating rates continue to improve, and downstream textile weaving plant operations are gradually recovering.

In short, geopolitical conflicts have triggered a chain reaction. Raw material shortages are driving a wave of production cuts. It is expected that in the short term, ethylene glycol futures prices will maintain a relatively strong pattern. Keep an eye on changes in domestic and overseas unit operating rates and cost movements. (Chuangchuang Futures)

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