Morning Market Briefing for Ethylene Oxide

I. Key Points

1. 9/22: US and Iranian delegations are scheduled to meet, with markets anticipating a de-escalation of geopolitical tensions, leading to a decline in international crude oil prices. NYMEX WTI crude oil futures (October contract) closed at $94.59/barrel, down $1.19/barrel (-1.24% WoW); ICE Brent crude oil futures (November contract) closed at $99.25/barrel, down $1.09/barrel (-1.09% WoW). China INE ethylene oxide futures (November 2026 contract) fell by 13.7 to 717.1 RMB/barrel; the night session dropped further by 22.3 to 694.8 RMB/barrel.
2. 9/22: Port-side ethylene CFR Northeast Asia prices remained steady at $1,180/ton compared to the previous working day.
3. 9/22: The daily capacity utilization rate for China's ethylene oxide industry stood at 49.26%.

II. Price Table

III. Market Outlook

The ethylene oxide market is expected to maintain its high-level stability today. On the supply side, while monoethylene glycol (MEG) prices have softened slightly, they remain at elevated levels. Co-production units are currently prioritizing MEG production in the short term. Coupled with persistently high raw material costs and tight supply, there are no expectations for increased EO supply. Downstream major industries show stable operating rates, with demand consumption progressing steadily. Regarding costs, domestic producers' ethylene transactions are primarily driven by rigid demand. Derivative product prices have generally declined, resulting in weak market profitability and limited external procurement demand. Ethylene prices are expected to remain range-bound, but cost support persists. Overall, both supply constraints and cost factors continue to support prices in the short term, keeping ethylene oxide prices firm. Continued monitoring of upstream and downstream dynamics is advised.

Data Source: Chempricehub