In the previous trading session, the mainstream market for ethylene glycol (EG) closed with a slight decline in prices. As geopolitical tensions in the Middle East eased temporarily, leading to a weakening trend in international crude oil, cost support for ethylene glycol further diminished. Throughout the day, EG futures continued to trend weakly, with the spot price transaction center shifting downward modestly.
**Key Factors Influencing Current Price Movements:**
**Cost:** Market expectations that India will reduce crude oil purchases from a European country under a trade agreement with the United States, coupled with news of U.S. forces intercepting a drone approaching the USS Lincoln, have stirred renewed unease over U.S.-Iran relations. This prompted a rebound in European and U.S. crude oil futures, providing a slight boost to ethylene glycol’s cost support.
**Supply:** The operating rate for ethylene glycol stands at 61.31%. Recent short-term shutdowns of some units have led to another minor decrease in the operating rate. However, with the planned restart of other facilities and increased load from previously restarted units, the overall operating rate is expected to rise further.
**Demand:** The operating rates for polyester and weaving sectors are 79.28% and 36.50%, respectively. Both sectors have seen a continuous decline in activity recently. Downstream demand for ethylene glycol is anticipated to weaken further as the Lunar New Year holiday approaches.
**Market Outlook:**
Tensions in the Middle East have intensified once again, causing crude oil prices to halt their decline and rebound overnight, thereby strengthening cost support for ethylene glycol. However, expectations of inventory accumulation in the EG market persist, keeping spot market pressure intact. According to a market sentiment survey, 70% of industry participants believe prices will see a slight rebound today. The spot price is forecasted to be around 3,670 yuan per ton, representing an increase of approximately 5 yuan per ton compared to the previous trading day.
Post time: Feb-04-2026