**Market Snapshot: A Quick Pullback**
Ethylene glycol (EG) prices corrected sharply in the previous trading session. The rapid decline followed a notable easing of short-term geopolitical tensions in the Middle East, which triggered a substantial drop in international crude oil prices. With fading concerns over potential supply disruptions, EG futures retreated quickly, dragging down spot market transaction prices.
**Key Drivers Shaping Today’s Market**
**Cost Pressure Weakens:** A two-week ceasefire agreement between the U.S. and Iran—including the reopening of the Strait of Hormuz—sent crude oil futures tumbling, marking their steepest single-day drop in six years. However, lingering doubts over the durability of the truce, the outcome of negotiations, and logistical challenges in resuming oil passage through the strait have capped further oil price declines. As a result, cost support for EG has weakened.
**Supply Remains a Bulwark:** China’s EG industry operating rate currently stands at 53.76%. Although recent load increases at some plants have nudged the rate slightly higher, overall utilization remains at low levels. This continues to provide strong support on the supply side.
**Demand Softens Gradually:** The polyester sector is running at 83.36%, while the fabric weaving rate has fallen to 58.40%. Both segments have seen sustained declines in operating rates recently, pointing to progressively weakening EG demand.
**Outlook: Cautious Rebound Expected**
Despite the easing of Middle East tensions, considerable uncertainty persists. With crude oil prices not showing further declines for now, and as EG supply-demand fundamentals continue to point to inventory drawdowns, strong support is expected at lower price levels. A market sentiment survey indicates that 65% of participants anticipate a modest rebound in EG spot prices today. The forecast price is around RMB 5,200 per ton, up RMB 30 from the previous trading day.
Post time: Apr-09-2026