DEG Market Update: Supply Constraints Propel Prices to Historic Highs | Industry Analysis

DEG Prices Surge to Multi‑Year Highs Amid Tight Supply

The diethylene glycol (DEG) market has maintained extraordinary strength, with prices holding at record‑high levels, mainly backed by severe supply‑side shortages. As of August 18, 2026, mainstream offers for DEG in Zhangjiagang, East China, stood at RMB 9,930‑9,950 per ton.

DEG has enjoyed strong price performance across 2026. The average East China price for H1 2026 reached RMB 5,631 per ton, representing a year‑on‑year increase of more than 20%. Looking back at key price milestones: the East China DEG price hit RMB 7,015/ton on May 21; on July 8, Sinopec East China lifted its offer by RMB 200 per ton to RMB 8,050‑8,250/ton.

If you are seeking reliable DEG supply or wish to check detailed product specifications, please visit Achilles Chem Diethylene Glycol Product Page. We supply ISO9001‑certified diethylene glycol for global industrial end‑users.

Dual Domestic & External Pressures Create Severe Supply Shortage

Supply constraints from both import sources and domestic production form the core driving force behind the current price rally.

Middle East imports, a critical supply source for China’s DEG market, have suffered heavy disruptions triggered by geopolitical conflicts. Confirmed import cargoes scheduled to arrive in August are expected to drop below 10,000 tons, potentially hitting a historical low.

Meanwhile, multiple large‑scale domestic DEG production units are under shutdown or maintenance status. Although facilities belonging to Shenghong Refining & Chemical and Hengli Petrochemical are scheduled for restart within August, market supply will remain tight before these units resume stable output.

Downstream Demand Remains Tepid with Hand‑to‑Mouth Procurement

In sharp contrast to tight supply conditions, downstream consumption stays mediocre. Major downstream sectors including unsaturated polyester resins and polyester fibres operate at low capacity utilisation rates amid weak end‑product order volumes.

Most downstream factories run at reduced loads and stick strictly to on‑demand purchasing, with little willingness to build large inventories. Even so, their existing raw‑material stockpiles are not abundant, which still delivers limited rigid‑demand support for DEG consumption.

Market Outlook: Geopolitics and Unit Restarts Are Key Variables

In the short run, supply shortages cannot be relieved rapidly, and the seller‑dominated market pattern is set to continue. Scarce import arrivals plus the waiting period for domestic plant restarts will keep DEG prices high with range‑bound fluctuations.

A critical market turning point hinges on the de‑escalation of Middle‑East geopolitical tensions. Once major import channels recover, together with the release of new domestic capacity including the 220,000‑ton per‑year new addition planned for 2026, the supply‑demand balance may reverse and bring downward pressure on DEG prices.

To sum up, today’s DEG market represents a typical supply‑driven pricing scenario. Geopolitical risks and domestic plant turnarounds jointly create artificial and practical supply tightening, overriding weak downstream demand and pushing prices to historic highs. Future market trends will largely hinge on geopolitical developments in the Middle East and the restart pace of domestic production facilities.

For bulk‑order consultation, product technical documents and market‑related business communication, please navigate to Achilles Chem Diethylene Glycol Product Portal to connect with our sales team.