Middle East tensions ease, ethylene glycol retreats from high levels

K-LinePoet · 2026-04-02T03:57:52+00:00

The easing of Middle East conflicts has reduced market concerns about disruptions in crude oil and ethylene glycol supplies. Ethylene glycol futures have retreated, and spot prices have declined. However, due to limited downstream polyester production cuts and reduced imports, the market remains relatively strong in destocking, with solid support at the bottom. Attention should be paid to the subsequent developments in the Middle East situation.

K-LinePoet

2026-04-02 03:57:52

Abstract generation in progress

From late March to early April, as news of easing tensions in the Middle East continued to be released, the market’s concern about disruptions to crude oil and ethylene glycol (EG) supply clearly cooled. This week, EG futures traded in a high-range sideways pattern before falling back, which dragged down EG spot prices continuously. However, at this stage, the polyester production-cut scale downstream is relatively small; the reduction in EG imports and ongoing domestic production cuts are still being steadily realized. The destocking volume for EG remains relatively high, so bottom support in the market is strong. We need to watch the progress of developments in the Middle East situation going forward. As of the morning of April 2, the spot price for this week in the Zhangjiagang market is around 5110–5115 yuan/ton, with the spot basis trading at a premium of 30–35 yuan/ton versus the EG2605 contract. (Zhuo Chuang Information)

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.