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What drives DEG demand and supply outside the polyester chain?

James Morrison
Published on 2026-08-07

What drives DEG demand and supply outside the polyester chain?
DEG sits at the edge of the glycol family. Roughly 90 percent of monoethylene glycol goes into polyester fiber and film, but DEG's outlets are more fragmented: unsaturated resin, polyurethane, adhesives, antifreeze and coatings, plus a minor role as a pharmaceutical excipient. That spread means DEG demand is less tied to a single downstream and more sensitive to industrial and construction cycles. On supply, DEG arrives largely as a by-product of ethylene oxide hydration, so its output moves with MEG economics rather than its own margin. When MEG producers cut rates or switch processes, DEG availability tightens or loosens in step, which is why DEG pricing often looks disconnected from its own inventory.

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  • Hannah Berg 2026-08-08 11:11
    For buyers, the by-product nature of DEG is the real risk. You cannot rely on DEG producers ramping up just because DEG looks tight; their decision follows MEG. Build supplier relationships across both coal-based and ethylene-based routes so you have alternatives when one chain cuts runs.
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