DGEA Market Dynamics Intelligence, Analysis, and Forecast

I. Market Price Dynamics
Recent Price Trends
- On May 18, 2026, the spot price of diethylene glycol (DEG) in East China closed at RMB 7,170/ton, up RMB 220/ton from the previous day; in South China, it closed at RMB 7,300/ton, up RMB 250/ton; and CFR China stood at USD 880/ton, up USD 28/ton.
- According to Shengyishe data, the benchmark price of DEG was RMB 7,073.33/ton on May 21, 2026; RMB 7,056.67/ton on May 20; RMB 7,113.33/ton on May 19; RMB 6,846.67/ton on May 18; and RMB 6,846.67/ton on May 15.

Regional Price Disparities
- Significant price variation exists among different brands and origins of DEG in Jinan City, Shandong Province. As of May 11, 2026, domestically produced DEG (purity ≥99.9%) traded at RMB 6,500/ton; imported DEG (purity ≥99.9%) was priced at RMB 6,500/ton, RMB 4,500/ton, and RMB 3,260/ton respectively—differences likely attributable to brand reputation, packaging specifications, transportation costs, and other factors.

II. Market Driver Analysis
Supply-Side Factors
- Plant Maintenance and Production Shifts: Prior to the Spring Festival 2026, a major plant in Zhejiang shut down one production line for conversion to alternative products; a facility in South China operated at reduced load; and a plant in Fujian underwent scheduled maintenance from early March through late April—collectively supporting post-holiday market stabilization and contributing to a pre-festival price rebound from weakness to stability. Recently, an ethylene glycol–diethylene glycol integrated plant in East China halted operations for maintenance, tightening supply and driving price increases.
- Import Situation: China’s DEG imports declined sharply in April 2026. Reduced import volumes have tightened domestic supply and provided upward support to prices.

Demand-Side Factors
- Upstream Industry Demand Growth: Increased operating rates in downstream unsaturated polyester resin production have bolstered port shipment volumes recently. DGEA (diethylene glycol amine) is widely used in textile auxiliaries (accounting for 42% of total demand) and as a fine chemical intermediate (21% share). Steady growth in these sectors sustains consistent demand for DGEA.
- Emerging Application Expansion: DGEA applications continue expanding into carbon capture, utilization, and storage (CCUS); new energy vehicles and energy storage systems; and bio-based chemicals. For instance, modified DGEA formulations have achieved breakthroughs in CCUS technology—reducing energy consumption while enhancing CO? capture efficiency. In lithium-ion batteries, DGEA-derived binders and electrolyte additives improve cycle life and safety performance.

Cost-Side Factors
- Crude Oil Price Impact: On May 15, 2026, international crude oil prices rose amid heightened market concerns over supply risks following a stalemate in U.S.–Iran negotiations and continued partial closure of the Strait of Hormuz. Higher crude prices increase feedstock and production costs for related petrochemicals, providing cost-based support for DGEA pricing.

III. Market Sentiment and Trading Activity
- Market Sentiment: On May 18, 2026, sellers in South China exhibited strong reluctance to sell (‘inventory-holding sentiment’), aligning with broader market strength—though overall trading atmosphere remained relatively subdued.
- Trading Activity: Recent trading activity has been influenced by price volatility and supply fluctuations. During price-upward phases, some downstream buyers may increase procurement to build inventory; conversely, tight supply conditions reduce available stocks and may slow transaction pace.

IV. Analytical Assessment
Short-Term Outlook
- DGEA prices are expected to remain firm in the near term. Supply-side constraints—including ongoing plant maintenance and declining imports—are tightening availability, while robust downstream demand and emerging application growth provide sustained demand support. Concurrently, rising crude oil prices lend further cost-based upward pressure.
Long-Term Outlook
- Over the long term, the DGEA market will evolve toward diversification and high-end specialization. With advancing carbon neutrality initiatives and rapid development of strategic emerging industries, DGEA applications in environmental protection and new energy sectors will expand continuously, driving steady demand growth. Industry consolidation is accelerating, enabling technologically advanced and scale-efficient enterprises to gain competitive advantage—gradually optimizing the market structure.

V. Forecast
Price Forecast
- In the short term, DGEA prices are likely to rise further, though the magnitude may be tempered by downstream acceptance capacity and prevailing inventory levels. Within the next 1–2 weeks, East China DGEA prices may exceed RMB 7,200/ton, while South China prices may surpass RMB 7,400/ton.
- Long-term, DGEA prices are projected to trend steadily upward amid gradually balancing supply–demand fundamentals and continuous expansion into new application areas—though price volatility is expected to moderate over time.
Supply–Demand Forecast
- Supply: Tight supply conditions are expected to persist in the near term due to maintenance activities and lower imports. However, as maintenance facilities resume operation and new production capacities come online incrementally, supply constraints will ease progressively.
- Demand: Sustained demand growth will be driven by both traditional downstream sector recovery and emerging application adoption. By end-2026, China’s apparent DGEA consumption is forecast to exceed 250,000 tons—a year-on-year growth of over 8%.