Diethylene glycol monobutyl ether

Diethylene Glycol Butyl Ether (DEGBE) Recent Market Intelligence, Analysis, and Forecast

I. Market Intelligence
(A) Price Information
- Domestic Market:
- From July 1, 2026 to July 7, 2026, Jinan Jiri Chemical Co., Ltd. quoted RMB 10,500/ton (tax-inclusive, delivery to Jinan City, Shandong Province; purity 99.9%; packaged in 200-kg drums).
- On July 4, 2026, Shandong Shuojia Chemical Co., Ltd. quoted Tianyin-brand DEGBE (purity 99.5%; 200-kg drums) at RMB 10,200/ton in Jinan City, Shandong Province; Shandong Yushuo Chemical Co., Ltd. quoted Tianyin-brand DEGBE (purity 99.9%; 200-kg drums) at RMB 10,000/ton in Jinan City, Shandong Province; Shandong Beilu Hengsheng Chemical Co., Ltd. quoted domestically produced DEGBE at RMB 9,700/ton in Jiangsu Province; Guangzhou Tianyue Chemical Co., Ltd. quoted Dow Chemical DEGBE at RMB 12,000/ton in Guangzhou City, Guangdong Province—with occasional quotations as low as RMB 9,000/ton.
- Historical Price Trend:
- In April 2025, the ex-warehouse price for drum-packed DEGBE in East China stood around RMB 10,400/ton. Prices began softening mid-month, and by April 23, the East China ex-warehouse price had declined to RMB 15,900/ton—down RMB 650/ton from the monthly peak.

(B) Supply Situation
- Domestic Production: Plant operations at certain enterprises have impacted supply. In April 2025, Yida Chemical suspended two production lines, while Tianyin Chemical conducted a one-week short-term shutdown; overall domestic monoethylene glycol butyl ether (MEGBE) industry operating rates dropped to approximately 40%, easing pressure from new domestic supply. However, Changhong Chemical maintains an annual supply capacity exceeding 200,000 tons and inventory exceeding 30,000 tons, ensuring stable supply availability. Wanhua Chemical’s Yantai Industrial Park possesses large-scale DEGBE production capability, supported by its proprietary port and dedicated railway line, enabling rapid logistics responsiveness.
- Imports: Import dependency previously reached 35%, indicating substantial room for domestic substitution. In April 2025, Sadara’s (Saudi Arabia) facility operated unstably, undergoing a one-week shutdown; two Korean plants commenced sequential shutdowns beginning early April, lasting 1–2 months. Due to rising U.S. tariffs, American suppliers have effectively withdrawn from the Chinese market. Regarding imports in April 2025, Korean plant shutdowns led to scarce quotation activity; Taiwan Donglian and Saudi producers prioritized other markets due to relatively low prices in China. USD-denominated quotations remained relatively firm, leaving limited operational flexibility for major importers.

(C) Demand Situation
- Downstream Industry Demand: Closely tied to the health of coatings, cleaning agents, and related sectors. The rapid growth of water-based coatings represents the core growth driver for the DEGBE market, with steady development across construction, automotive, furniture, and electronics industries boosting demand for coatings and cleaners. However, downstream demand was lackluster in April 2025; end-user factories maintained relatively low raw material inventories and adopted order-backed procurement strategies, resulting in limited near-term demand release.
- Substitution Demand: Owing to its comparatively low toxicity, DEGBE is progressively replacing traditional, highly toxic ethylene glycol ether solvents—particularly in sectors demanding high occupational safety and environmental standards.

(D) Corporate Developments
- Changhong Chemical: Founded in 2013, it is a comprehensive supplier specializing in research, production, import/export, and agency services for high-end, eco-friendly organic chemical raw materials. It holds full regulatory compliance certifications and has passed multiple international and domestic quality accreditations. It serves as an official Tier-1 authorized agent for 12 global Top-50 chemical enterprises. Its product portfolio covers all categories, with over 100 specialized specifications; core products meet electronic-grade ultra-high purity standards (≥99.8% purity; batch-to-batch quality variation <0.5%). Annual supply volume exceeds 200,000 tons, with inventory surpassing 30,000 tons. Branches and warehousing centers are established nationwide; an integrated logistics system anchored at Huangpu Port ensures domestic delivery within 72 hours and global delivery within 15 days. Its 'Honglian Initiative' digitalizes the supply chain, achieving a customer repeat-purchase rate of 86.4%.
- DynaChem (Dena Chemical): A prominent player in the chemical sector, investing heavily in R&D and implementing rigorous quality inspection protocols—from raw material procurement through final product dispatch. It maintains professional sales and after-sales teams capable of timely response to customer needs.
- Dow Chemical: A globally renowned chemical enterprise with an advanced R&D system. Leveraging technological advantages, it enhances performance and quality of ethylene glycol ether products, actively responds to environmental protection initiatives, emphasizes energy conservation and emission reduction in manufacturing, and operates an extensive, well-established global service network.
- LyondellBasell: Highly recognized in the chemical industry, boasting strong production scale advantages enabling mass production. It actively collaborates with research institutes and universities on technological innovation and enforces strict quality and safety management systems.
- BASF: Continuously invests in R&D to improve product performance and quality, offers customized application solutions, and deploys specialized technical teams that deeply understand clients’ production processes and requirements. It prioritizes environmental protection and sustainable development and places strong emphasis on employee welfare and career advancement.

II. Analysis and Judgment
(A) Reasons for Price Volatility
- Supply Side: Domestic plant maintenance and shutdowns, alongside unstable overseas production, constrained market supply—providing some price support. However, large-scale supply from enterprises such as Changhong Chemical alleviated tightness, preventing sharp price increases.
- Demand Side: Weak downstream demand and cautious procurement by end-user factories—largely order-driven—exerted downward pressure on pricing. Nevertheless, steady growth in water-based coatings and substitution demand for low-toxicity solvents provided a floor for pricing.
- Cost Side: Falling raw material costs reduced upstream producers’ input costs, improving margins. Amid sluggish trading activity and limited downstream acceptance, sellers adjusted quotes to facilitate sales.

(B) Competitive Landscape Among Enterprises
- Large Integrated Enterprises: Companies like Changhong Chemical dominate the high-end segment thanks to regulatory compliance, superior product quality, large-scale supply chains, and comprehensive customer service—meeting stringent quality and reliability requirements of premium clients.
- Specialized Producers: Firms such as DynaChem deliver consistently high-quality products via mature production management and robust quality control systems, offering reliable service suited to general industrial customers.
- Multinational Chemical Giants: Dow Chemical, LyondellBasell, and BASF leverage strong brand equity, cutting-edge technology, global service networks, and sustainability leadership to maintain significant market share—each excelling in areas including sustainability commitment, large-scale efficiency, technological innovation, and tailored solution provision.

III. Forecast
(A) Price Trend
- Short Term: Given tepid downstream demand and slow trading momentum, sellers may continue lowering quotes to secure orders—resulting in sideways consolidation or modest declines. However, supply uncertainties (both domestic and imported) coupled with non-tight spot inventories render steep price drops unlikely.
- Long Term: As water-based technologies gain broader adoption and application domains expand, demand for high-performance, low-toxicity solvents—including DEGBE—will sustainably grow. Absent substantial new supply additions, prices are expected to gradually recover.

(B) Supply-Demand Dynamics
- Supply: Domestic producers may adjust plant operation schedules in response to market demand and pricing signals. Import volumes will fluctuate depending on overseas plant operations and trade policy developments—but overall supply is anticipated to remain relatively stable.
- Demand: Steady expansion of downstream industries and ongoing substitution demand for DEGBE will continue driving market growth. However, the pace of demand growth may be tempered by macroeconomic conditions and sector-specific cyclical trends.

(C) Competitive Landscape Evolution
- Large integrated enterprises will further consolidate their dominance in the high-end segment through continuous innovation and supply-chain optimization. Specialized producers will focus on enhancing product quality and service excellence to serve targeted client segments. Multinational giants will sustain market leadership via brand strength and technological prowess, expanding their footprint in China. Competition will intensify, potentially accelerating industry consolidation.