The seller's dominance remains unchanged, keeping diethylene glycol prices at elevated levels.

Lead: The diethylene glycol (DEG) market held firmly to its bullish tone in August. Cargo arrivals during the month declined further from July levels, compounded by typhoon-related disruptions to scheduled vessel arrivals. In addition, several large domestic refining and chemical units remained shut down. The dual-tight supply picture—both domestically and from imports—drove prices to new highs.

Confirmed import cargoes this month include domestic-origin product, Taiwan-origin product, and Canadian product arriving toward month-end. The combined volume from these three sources totals less than 10,000 tons, and a gap period with no arrivals is likely from mid-month through mid-to-late month, visibly tightening tradable import supply. Due to the strait closure, the Middle East—DEG's primary import source—has yet to release meaningful volumes. Shipping lead time from Middle East ports to Chinese ports remains 20–30 days, meaning that even if the strait were to reopen now, imported cargoes would take nearly a month to reach domestic ports. August imports could hit a historic low.

On the domestic front, Shenghong Refining & Chemical 2# and Hengli Petrochemical 1# have restart plans for the second half of the month. At present, a significant number of large domestic refining and chemical units are under maintenance, while operating units are running at average utilization rates. Domestic supply remains in a similarly tight balance. Overseas, the 830,000-ton Nan Ya Plastics unit in the US is scheduled to restart next week, but most units in Iran and Saudi Arabia remain offline.

2026 Diethylene Glycol Unit Maintenance Summary (10,000 tons)

Uncertainty surrounding the Strait of Hormuz remains elevated, and international oil prices are fluctuating erratically. However, strong supply-side fundamentals have offset macro headwinds such as falling crude prices. Broader market volatility is having limited impact on DEG. The absence of import cargoes, subdued domestic operating rates, and tight supply are bolstering holder sentiment. Even a short-term replenishment of supply would not change the current supply structure.

With fundamentals continuing to provide effective support, the DEG market is exhibiting seller sentiment. The short-to-medium-term market still has room to rise and is unlikely to fall from elevated levels. Actual variables within the month are limited, and geopolitical developments on the news front are unlikely to alter the prevailing trend. Externally, market participants are monitoring developments around the strait, while domestically, attention is focused on the restart plans of certain refining and chemical units.