ChemPriceHub Important Reminder: Sinopec's Diethylene Glycol Unit Shutdown, Production Capacity Excluded

On January 4, PetroChina Northwest Chemical Sales Department's Diethylene Glycol (DEG) unit in Dushanzi reported no available volume or pricing. The company's 60,000-ton/year unit has been shut down with no plans for restart, and this unit has already been excluded from China's domestic DEG production capacity. PriceSeek's analysis of DEG shows a bullish-bearish score of 1.5. The shutdown of PetroChina Northwest Chemical Sales Department's DEG unit in Dushanzi with no restart plans, and the exclusion of this 60,000-ton/year unit from domestic production capacity, have led to a significant reduction in supply. The supply shortage is expected to drive up spot prices, with clear bullish factors. The permanent exit of the unit reinforces market expectations of tight supply, and spot prices are anticipated to show an upward trend.