Clear Supply Turning Point

Domestic production of ethylene-to-MEG remains profitable, with non-syngas MEG facilities operating around 71.3%. Ethylene oxide (EO) production is also growing, as evidenced by a stable EO price at about 7,000 yuan/mt and a price spread of 1,150-1,200 yuan/mt over MEG. Far East Union Petrochemical resumed production last week, and Taixing Jinyan's 200kt EO facility restarts this week, boosting supply in East China. EO demand remains strong but is expected to decline as temperatures drop, leading some producers to switch EO capacity to MEG in December. Key facilities such as Sanjiang and Satellite are expected to be involved in this shift.