In 2023–2024, the United States, Germany, and South Korea were the leading exporters of Ethylene Oxide, collectively accounting for over 45% of global exports by value, while China, India, and Brazil emerged as the largest importers, driven by domestic demand in surfactants, pharmaceuticals, and sterilization applications. Global Ethylene Oxide trade volumes remained relatively stable year-on-year, though regional shifts in sourcing—particularly increased imports by Southeast Asian nations—and tightening supply constraints contributed to upward pressure on Ethylene Oxide prices.
Recent Market Dynamics Intelligence on Ethylene Oxide
I. Price Trends
1. Domestic Market: In the near term, domestic ethylene oxide prices have shown a stable but slightly weak trend. Prices in major consumption regions, including East China, South China, and North China, have generally decreased by 50-100 yuan/ton, with mainstream transaction prices maintained in the range of 6,800-7,000 yuan/ton.
2. International Market: Asian ethylene oxide prices are supported by raw material ethylene costs, with CFR Northeast Asia prices stable at USD 950-980/ton. However, sluggish downstream demand has suppressed any potential price increases.
II. Supply-Side Dynamics
1. Capacity Utilization: The operating rate of domestic ethylene oxide units is approximately 75%, remaining unchanged from the previous period. Some enterprises have reduced operating rates due to maintenance or raw material supply issues, but overall supply remains sufficient.
2. New Capacity: A 100,000-ton/year unit in East China is planned to come online this month, which may further increase supply pressure.
3. Imports: Import volumes remain at low levels, primarily due to international price inversion and insufficient procurement willingness among traders.
III. Demand-Side Dynamics
1. Downstream Industries:
- Polycarboxylate Water Reducer Monomers: The off-season effect is evident, with operating rates below 50%, leading to reduced procurement of ethylene oxide.
- Ethanolamines: Demand remains stable, supported by export orders, but overall incremental growth is limited.
- Surfactants: Downstream daily chemical industry demand is sluggish, with high enterprise inventories. Procurement is mainly driven by essential needs.
2. End Markets: Declining operating rates in the real estate and infrastructure sectors have indirectly suppressed ethylene oxide demand.
IV. Cost-Side Analysis
1. Raw Material Ethylene: Northeast Asia ethylene prices are maintained at USD 850-880/ton. Weakening cost support has narrowed the profit margin for ethylene oxide.
2. Coal/Methanol: The cost of the coal-to-ethylene route is affected by coal price fluctuations, but its proportion is limited, keeping overall cost pressure manageable.
V. Inventory and Logistics
1. Inventory Levels: Domestic ethylene oxide factory inventories are at medium-to-high levels. Some enterprises have adopted price cuts to alleviate inventory pressure.
2. Logistics: Inter-regional logistics remain smooth, but cross-provincial transportation costs have slightly increased due to rising oil prices.
VI. Analysis and Judgment
1. Short-term (1-2 weeks): The market faces prominent supply-demand contradictions, with cautious downstream procurement. Prices are expected to continue a weak consolidation, with limited declines (50-100 yuan/ton).
2. Medium-term (1 month): If downstream industry operating rates recover (e.g., improved demand for water reducer monomers), prices may rebound from the bottom. However, the magnitude of the increase will be constrained by supply increments.
3. Long-term (3 months): Attention should be paid to the pace of new capacity release and fluctuations in raw material ethylene prices. If cost-side support strengthens, the central price level of ethylene oxide may shift upward.
VII. Forecast and Risk Warnings
1. Price Forecast: The mainstream price range in July may decline to 6,700-6,900 yuan/ton, gradually recovering to 6,900-7,100 yuan/ton in August as demand improves.
2. Risk Factors:
- Sustained low operating rates in downstream industries;
- Significant drop in raw material ethylene prices;
- Supply oversupply due to the concentrated release of new capacity.
Ethylene oxide is a colorless, highly volatile, flammable gas at ambient temperature with a faintly sweet, ether-like odor; it is commonly handled as a liquid under pressure or refrigeration (boiling point: 10.7 °C, melting point: –111.3 °C). It is a cyclic ether and a key organic chemical intermediate. Its primary industrial use is in the production of ethylene glycol (for antifreeze and polyester fibers), nonionic surfactants (e.g., alcohol ethoxylates), ethanolamines, and glycol ethers. These derivatives serve critical roles in polymers, coatings, agrochemical formulations, pharmaceutical excipients, and personal care products.
Ethylene oxide is widely used as a sterilizingagent; as a fumigant; as a propellant; in theproduction of explosives; in the manufactureof ethylene glycol, polyethylene oxide, gly-col ethers, crown ethers, ethanolamines, andother derivatives; and in organic synthesis.
Ethylene oxide is the simplest cyclic ether. It is a colorless gas or liquid and has a sweet, etheric odor. Ethylene oxide is a flammable, very reactive and explosive chemical substance. On decomposition, vapors of pure ethylene oxide mix with air or inert gases and become highly explosive. Ethylene oxide, is used in large scale as an intermediate in the production of monoethylene glycol, diethylene glycol, triethylene glycol, poly(ethylene) glycols, ethylene glycol ethers, ethanolamine, ethoxylation products of fatty alcohols, fatty amines, alkyl phenols, cellulose, and poly(propylene glycol). It is also used as a fumigant for food and cosmetics, and in hospital sterilization of surgical equipment and heat sensitive materials.
This chemical is included in Basic Chemicals - Ethylene Glycol Industry. See more about what is Ethylene Oxide and Ethylene Oxide SDS information.
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