Morning Market Briefing: Diethylene Glycol (DEG)

I. Key Points

1. Mediators continue to promote U.S.-Iran peace talks, slightly alleviating market concerns over supply risks, leading to a decline in international crude oil prices.
2. The average operating rate of domestic unsaturated polyester resin (UPR) plants this week was 34.5%, down 0.5% from the previous period.
3. From October 23–25, total shipments from two tank farms in Zhangjiagang amounted to 5,770 tons, including 3,100 tons loaded onto vessels. As of now, combined inventory at Changjiang International and Fubao tank farms stands at 11,800 tons.

Core Logic: International crude oil prices remain elevated; downstream adoption of diethylene glycol (DEG) has slowed despite sustained price increases by DEG suppliers. Month-end vessel cargo arrivals are expected to boost inventories.

II. Price Table

Notes:

1. All product prices refer to National Standard Premium Grade.
2. Crude oil prices are quoted in USD/barrel; other three products are quoted in CNY/ton.
3. All CNY prices listed above are ex-warehouse, tax-inclusive, spot exchange rates.
4. Change rates reflect week-on-week variations.

III. Market Outlook

According to Chempricehub report on October 27: At month-end, DEG shows no signs of softening. Some traders are discussing the possibility of prices reaching the 8,000 yuan level, and the market may test this threshold. Short-term downstream demand remains robust, providing strong support for DEG prices.

Legend:

1. ↓↑ indicates significant fluctuation, highlighting data points with changes exceeding 3%.
2. ↗↘ indicates narrow-range fluctuation, highlighting data points with changes within 0–3%.