ShouChuang Futures: Overseas facilities encounter force majeure, ethylene glycol futures surge to hit the daily limit

K-LinePoet · 2026-04-09T06:38:53+00:00

East China Ethylene Glycol spot prices hit a new high for the year. Due to the attack on the Saudi industrial zone, ethylene glycol production may decline, leading to tight supply. Weak terminal demand and rising polyester product inventories suggest that ethylene glycol futures prices are expected to remain strong in the short term. Pay attention to future geopolitical developments and plant operation changes.

K-LinePoet

2026-04-09 06:38:53

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In the spot market, the East China ethylene glycol (EG) price is being negotiated around 5710, hitting a new high within the year, and the spot basis remains strong.

On the supply side, the Saudi Jubail Industrial Area was hit by an attack, which may further reduce EG operating rates. This region has 5.8 million tons of EG production capacity, accounting for more than 70% of Saudi’s total output. Previously, two Saudi EG units—one with 550k tons and another with 700k tons—were shut down due to feedstock issues. In addition, a 600k-ton EG unit in Shaanxi, China is planned to stop for maintenance starting April 15 for 20 days. Last week, total MEG inventory in the main East China port area was 935k tons, decreasing by 18k tons month-over-month.

On the demand side, negative feedback from end-users has emerged: weaving operating rates declined, and polyester product inventories rose. Polyester load factors held steady with a slight decline, and the production reduction schedule has been extended to the end of April.

Overall, with a large Saudi chemical industrial park targeted by an attack, EG operating rates may be further reduced, import volumes are expected to fall, and ports will continue drawing down inventory. It is expected that in the near term, EG futures prices will remain firm; watch developments in geopolitical conditions, changes in unit operating rates at home and abroad, and cost movements. (Capital Futures)

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