2-Ethoxyethanol

Ethylene Glycol Monoethyl Ether (EGEE) Recent Market Dynamics Report

I. Price Dynamics

1. Latest Quotations (June 21–29, 2026)
- Shandong Province:
- Ait Supply Chain Management Co., Ltd. (Zhejiang) [Jiangsu Tianyin, purity 99.9%]: RMB 10,000/ton
- Shandong Jinshengrun Chemical Co., Ltd. [Jiangsu Tianyin, purity 99.9%]: RMB 10,000/ton
- Shandong Xima Supply Chain Management Co., Ltd. [Domestic, purity 99.9%]: RMB 8,000/ton
- Shandong Shuojia Chemical Co., Ltd. [Jiangsu Tianyin, purity 99.9%]: RMB 12,000/ton
- Jinan Jinrihe Chemical Co., Ltd. [Domestic, purity 99.9%]: RMB 8,200/ton
- Jinan Jinrihe Chemical Co., Ltd. [Jiangsu Tianyin, purity 99.9%]: RMB 8,700/ton
- Shandong Yihé Fine Chemical Co., Ltd. [Jiangsu Tianyin, purity 99.9%]: RMB 8,000/ton
- Qingdao Chengxin Hongfeng Chemical Co., Ltd. [Jiangsu Tianyin, purity 99.9%]: RMB 8,000/ton
- Weifang Mingbo Chemical Co., Ltd. [Domestic, purity 99.9%]: RMB 8,000/ton
- Shandong Yusuo Chemical Co., Ltd. [Jiangsu Tianyin, purity 99.9%]: RMB 10,300/ton

- Hubei Province:
- Hubei Qibajiu Chemical Co., Ltd. [Hubei Qibajiu, purity 99%]: RMB 9,800/ton
- Wuhan Hengjiu Chemical Co., Ltd. [Jiangsu Tianyin, purity 99%]: RMB 9,800/ton

- Jiangsu Province:
- Nanjing Runsheng Petrochemical Co., Ltd. [Domestic, purity 99.9%]: RMB 11,000/ton

2. Price Volatility
- Recent EGEE prices have exhibited significant volatility, with notable price disparities across brands, origins, and purity grades. For example, quotations in Shandong Province ranged from RMB 8,000–10,500/ton on February 4, 2026, but widened to RMB 8,000–13,000/ton by April 28, 2026.
- According to the Business Society benchmark price index, the benchmark price stood at RMB 9,507.14/ton on June 12, 2026, and remained unchanged at RMB 9,507.14/ton on June 16, 2026—indicating short-term price stabilization.

II. Market Supply and Demand

1. Supply Situation
- Overcapacity: China accounts for 48% of global EGEE production capacity, yet its capacity utilization rate stands at only 68%, resulting in a persistent buyer’s market and intense price competition.
- New Capacity Additions: In 2026, domestic ethylene glycol (EG) new capacity additions are projected at approximately 2.73 million tons, concentrated primarily in the second half of the year. The supply increment significantly exceeds demand absorption capacity, potentially pushing the EGEE price center downward to RMB 8,000–8,500/ton.

2. Demand Situation
- High-End Product Shortage: Import prices for electronic-grade EGEE (G5 standard) reach USD 28,000–35,000/ton—15–20 times higher than those for standard industrial-grade products. Its share of total demand is expected to rise from 18% in 2026 to 32%.
- Subpar Demand Recovery: Should the downstream polyester industry’s off-season persist or external demand deteriorate further, EGEE prices may face continued downward pressure.

III. Cost and Policy Impacts

1. Raw Material Price Volatility
- Ethylene Oxide (EO): As the core raw material for EGEE, EO relies on imports for ~40% of domestic supply. Its average import price rose by 23.4% in 2022, elevating overall production cost benchmarks.
- Ethylene Prices: Ethylene pricing is closely tied to international crude oil prices; in 2023, it surged to USD 950/ton, further intensifying cost pressures.

2. Environmental and Policy Drivers
- Stricter Environmental Standards: VOCs (Volatile Organic Compounds) emission limits have been tightened to 60 mg/m3. End-of-pipe treatment facility investments now range between RMB 12–15 million, increasing industry environmental compliance costs by 25–30% and compressing profit margins.
- Export Tax Rebate Cancellation: Effective April 1, 2026, export tax rebates for ethylene glycol were abolished. This reduces tax refunds by approximately RMB 13 per RMB 100 of exported goods. While potentially triggering short-term “export rushes,” the policy will erode long-term international competitiveness and accelerate industry consolidation.

IV. Analysis and Outlook

1. Short-Term Price Trend
- Recent EGEE prices have been significantly influenced by fluctuations in ethylene glycol (EG) pricing. Although EG prices rebounded in June 2026 after a prior decline, weak downstream demand—including low polyester plant operating rates and poor end-market order intake—may cap upward price momentum. Consequently, EGEE prices are likely to remain in a high-level consolidation phase in the near term.

2. Long-Term Market Trends
- Supply Pressure: Gradual commissioning of new domestic EG capacity will sustain upward pressure on EGEE supply, further depressing the price center over time.
- Evolving Demand Structure: Rising demand for high-end electronic-grade EGEE will drive industry transformation toward high-value-added, differentiated product development.
- Environmental and Policy Impacts: Tighter environmental regulations and the elimination of export tax rebates will accelerate industry consolidation, enabling enterprises with environmental advantages and economies of scale to emerge as leaders.