**1. Previous Session’s Main Market Closing Price**
The price of ethylene glycol (EG) edged lower in the previous trading session. As geopolitical tensions in the Middle East show signs of easing, their supportive impact on EG costs and supply has weakened. Meanwhile, polyester production cuts continue to expand, increasing demand-side pressure on EG. This led to a weakening trend in EG futures during the day, with spot prices following suit and declining slightly.
**2. Key Factors Influencing Current Market Price Changes**
- **Cost:** With the easing of domestic unrest in a Middle Eastern country, the likelihood of a U.S. military strike has diminished. European and U.S. crude oil futures stabilized after intraday fluctuations, reducing upward pressure on EG production costs.
- **Supply:** EG operating rates stand at 60.58%. Although recent short-term maintenance shutdowns of some EG facilities caused a slight decline in operating rates, multiple units are nearing the end of their maintenance cycles. The subsequent restart of these units, combined with new facility startups, is expected to keep supply levels elevated.
- **Demand:** Polyester operating rates are at 85.83%, while textile production rates are at 55.54%. Polyester production continues to decline, indicating weaker demand for EG in the near term.
**3. Market Outlook**
With recent geopolitical tensions subsiding, market focus has shifted back to fundamentals. Ahead of the Chinese New Year holiday, downstream sectors such as polyester and textile production are gradually reducing output, further weakening EG demand and increasing inventory accumulation pressure. In the short term, EG prices are expected to remain under pressure. According to market sentiment surveys, 60% of industry participants anticipate a slight downward trend in prices today. Spot prices are projected to hover around 3,610 yuan/ton, down approximately 25 yuan/ton from the previous trading session.
Post time: Jan-20-2026