The "Invisible Winner" Behind the Surge in Ethylene Glycol: Wankai New Materials' "Gas Phase" Project Reaches Full Production, Enjoying Industry Scissor Difference Benefits

On March 30th, Wankai New Materials (301216.SZ) closed up 10.47%, with a trading volume of 822 million yuan, a turnover rate of 5.75%, and a total market value of 15.67B yuan, making it one of the most notable targets in the chemical sector that day. Beneath the surface of fluctuating market sentiment, this is not an untraceable short-term gamble, but rather a deep pricing of the market’s “cost reconstruction” logic. The core engine driving this stock price movement is the recent continuous rise in ethylene glycol prices, and Wankai New Materials has transformed this industry crisis into a profit explosion with its unique raw material structure, which is its “secret weapon.”

As a core raw material in the polyester industry chain, the price trend of ethylene glycol directly impacts the profitability of downstream companies. On March 30, 2026, the spot price of ethylene glycol had risen to 5,175.33 yuan/ton, a monthly increase of 36.26%. Although there was a weekly decline of 4.78%, the strong upward trend on the monthly chart still injected strong momentum into the industry. The rise in ethylene glycol prices is rooted in fluctuations in the global energy supply chain. International oil prices remain high, driving up polyester costs, which in turn triggers panic buying among downstream companies, resulting in significant price elasticity in ethylene glycol.

In this round of ethylene glycol price hikes, Wankai New Materials’ 600k-ton natural gas-based ethylene glycol project in Sichuan has become a market focus. The project is located in Puguang Economic Development Zone, Dazhou, Sichuan, relying on abundant local natural gas resources and adopting a natural gas-based ethylene glycol process. Compared to traditional petroleum and coal routes, it has significant cost advantages. Currently, the project has achieved full production and stable operation. In the second quarter of 2026, additional projects such as carbon dioxide and terephthalic acid are expected to come online, further extending the industry chain.

Wankai New Materials’ cost advantage is not only reflected in its natural gas-based ethylene glycol process but also in its forward-looking inventory strategy. Against the backdrop of tight global energy supplies and soaring liquid raw material prices, the company maintains ample natural gas inventories, providing a solid safety cushion during periods of sharp raw material price fluctuations. While peers face high spot procurement costs and significant cost transfer pressures, Wankai New Materials, with its low-cost inventories and stable gas supply, effectively avoids the impact of rapid cost increases. Instead, it benefits from the larger arbitrage margin as product prices rise sharply with the market.

From an industry perspective, the supply and demand pattern of ethylene glycol is undergoing positive changes. From 2025 to 2026, new ethylene glycol capacity additions are limited, with a projected year-on-year capacity increase of only 3.38% in 2026. Meanwhile, new capacities in downstream polyester filament, PET bottle chips, and polyester staple fiber are expected to drive demand for ethylene glycol by 4.2813 million tons, further widening the supply-demand gap. Additionally, the escalation of geopolitical tensions in the Middle East has restricted shipping through the Strait of Hormuz, and delayed chemical capacities overseas are accelerating clearance, creating structural opportunities for the domestic ethylene glycol industry.

Wankai New Materials’ fully operational ethylene glycol project aligns perfectly with this industry opportunity. The company currently has 3 million tons of bottle-grade PET capacity and 600k tons of MEG ethylene glycol capacity, forming a “PET + MEG” dual-driven pattern. Recently, the prices of PET and MEG have risen, and the recovery of PET processing fees is expected to positively impact the company’s performance. In terms of stock price performance, since March 2026, the company’s stock has increased by over 30%, and the sharp rise on March 30th is a concentrated market recognition of this logic.