ShouChuang Futures: Geopolitical risk premium declines, ethylene glycol futures drop sharply

K-LinePoet · 2026-04-08T07:15:52+00:00

East China Ethylene Glycol prices have fallen to 5,234 yuan/ton due to supply disruptions caused by shutdowns in Saudi Arabia and domestic facilities. Terminal demand has weakened, weaving operations have decreased, and polyester inventories are rising. In the short term, ethylene glycol futures are expected to fluctuate weakly, with attention to geopolitical developments and plant operation statuses.

K-LinePoet

2026-04-08 07:15:52

Abstract generation in progress

In the spot market, in East China, the price of ethylene glycol is 5234 yuan/ton for pickup, down 376 yuan/ton from the previous trading day.

On the supply side, a 550k-ton and a 700k-ton ethylene glycol unit in Saudi Arabia have been shut down due to raw material issues, while in China, a 600k-ton ethylene glycol unit in Shaanxi is scheduled to be shut down for maintenance starting April 15 for 20 days. Last week, the total MEG inventory in the main ports in East China was 935k tons, down 18k tons month-over-month.

On the demand side, negative feedback from downstream has emerged: weaving operating rates have fallen, and polyester product inventories have risen. Polyester load factors were steady with a slight decline; the production-reduction timeline has been extended to the end of April.

Overall, with geopolitical conditions easing and the strait opening, energy prices have fallen sharply. At the same time, this is beneficial for overseas units to resume, which in turn brings expectations of incremental supply. It is expected that in the short term, ethylene glycol futures prices will trade sideways to the downside. Pay attention to the status of the U.S.-Iran negotiations, the restoration of navigation through the Strait of Hormuz, and changes in unit operating rates triggered by these developments. (Chuangshi Futures)

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.

2 Likes