Soc Gen Futures: Production Ramp-up Boosts Inventory Accumulation, Ethylene Glycol Futures Weaken on Adjustment

K-LinePoet · 2026-03-18T07:12:57+00:00

This week, domestic ethylene glycol supply increased somewhat, but downstream demand remained weak, leading to increased inventory. It is expected that prices will remain under pressure in the short term. Attention should be paid to new capacity launches and the recovery of terminal operations.

K-LinePoet

2026-03-18 07:12:57

Abstract generation in progress

On the supply side, domestic ethylene glycol operating rate this week is 66.34%, up 1.15% week-on-week. The total domestic ethylene glycol production is 429,800 tons, an increase of 7,500 tons, up 1.77% week-on-week. As of February 26, the total MEG inventory in the main port area of East China is 935,000 tons, an increase of 31,400 tons week-on-week. Ethylene glycol supply remains high, with new plants expected to start production.

On the demand side, affected by joint production cuts before the holiday, downstream polyester operating rates are generally low. Terminal weaving operations mainly recovered after the Lantern Festival, so short-term demand remains weak.

In summary, ethylene glycol supply and demand are accumulating inventories, and new capacity release pressure exists. Short-term prices are expected to remain weak, with attention to the progress of new capacity launches and downstream operation recovery. (First Capital Futures)

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