Recovering Diethylene Glycol Market After Dragon Boat Festival in China

Qingdao, China: According to the sources, the Diethylene Glycol market has been regaining its momentum after the dragon boat festival. After the holiday, trading activity improved in the domestic market, which has been further supported by the rising trend in all petrochemical-derived products due to volatile Crude Oil prices. Therefore, owing to the above-considered factors, the price of Diethylene Glycol rose by USD 8.47/MT compared to the previous rate.

After the dragon boat holiday, the market participants seem enthusiastic, with high orders coming from the downstream market. In terms of raw material, Diethylene Glycol is produced by partial hydrolysis of ethylene glycol, utilizing ethylene as its feedstock. The whole production depends on Crude oil, which remains volatile in the market, owing to the increasing demand after some ease in China. Furthermore, promptly growing demand from downstream automotive, paint, and coatings are augmenting its market, alongside rapid urbanization, which is booming the demand for Diethylene Glycol by cement manufacturers. Diethylene Glycol is also required from polyester resins, polyurethanes, and the plastic industry.

Meanwhile, the operating rate of many manufacturing companies improved, assisted by sufficient imports from Saudi Arabia. The Diethylene Glycol market in the East China area opened stronger, inventory level with Zhangjiagang also remained high and hovered around 68 thousand three hundred tons. Some of the Traders based in China even quoted, "China may re-impose Covid restriction, foreseeing the increasing new Covid-cases emerging in Beijing." This is expected to loosen the market activity, besides emerging demand from the downstream sector.

Therefore, ChemAnalyst prediction states that "The backsliding of China's reopening and the firmness in crude oil is anticipated to emerge together and contribute to the changing market scenario of Diethylene Glycol. So, the Analyst believes that the Diethylene Glycol price may be adjusted, aided by the altering market in demand-supply in China.