my country’s diethylene glycol production capacity is expanding rapidly, and the market supply and demand pattern has changed significantly.

Diethylene glycol (DEG), also known as diethylene glycol ether, diethylene glycol, etc., is an organic compound that appears as a colorless, transparent liquid with no mechanical impurities. Diethylene glycol is hygroscopic and has a wide range of applications. It can be used as an extraction solvent, desiccant, lubricant, plasticizer, etc. in resins, tobacco, fibers, textiles, printing, petroleum and other fields. In recent years, thanks to the continuous release of downstream market demand, the diethylene glycol market has developed rapidly.

The demand for diethylene glycol in the Chinese market is huge, and domestic production is difficult to meet the market demand. Therefore, the diethylene glycol market still has a certain degree of import dependence. From 2016 to 2020, my country’s diethylene glycol imports showed a growth trend. In 2020, my country’s diethylene glycol import dependence was as high as 60%, with the import volume reaching about 852,000 tons. Imported diethylene glycol mainly comes from India and the United States. , Saudi Arabia and other countries. However, with the release of domestic production capacity, the increase in domestic supply of diethylene glycol has impacted the import market, and the growth rate of diethylene glycol imports has slowed down year by year.

According to the “2022-2026 China Diethylene Glycol Industry Market Monitoring and Future Development Prospects Research Report released by the Industrial Research Center It shows that in recent years, my country’s diethylene glycol production capacity has grown rapidly. In 2021, the new domestic diethylene glycol production capacity will reach more than 300,000 tons, a record high. At this stage, my country’s diethylene glycol production companies include Hengli Petrochemical, Zhejiang Petrochemical, Fude Energy, Quanzhou Petrochemical, Zhongke Refining and Chemical, etc.

With the release of relevant production capacity, my country’s supply of diethylene glycol continues to increase. At the same time, the market price of diethylene glycol is expected to decrease. In 2020, the average price of diethylene glycol in my country dropped to 3,760 yuan/ton. In 2016 -The average annual compound growth rate in 2020 is approximately -9.0%. At present, the application of diethylene glycol is mainly concentrated in the field of resin. However, with the expansion of industry capacity, the problem of overcapacity of unsaturated resins has become increasingly prominent. It will be difficult to significantly increase the consumption of diethylene glycol in the field of unsaturated resins in the future.

In 2021, my country’s diethylene glycol market will develop strongly. Thanks to the continued expansion of domestic production capacity, the supply and demand pattern of diethylene glycol has changed significantly. On the supply side, due to the commissioning of Satellite Petrochemical, Gulei Refinery, and Zhejiang Petrochemical units, domestic diethylene glycol supply continues to relax, and import dependence decreases; on the demand side, polyurethane, morpholine, polyester and other industries are operating steadily in 2021 , the proportion of demand for diethylene glycol in the above fields has increased.

Industry analysts said that as a chemical product, diethylene glycol has a wide range of applications. In recent years, it has benefited from the rapid development of downstream industries. , the market demand for diethylene glycol continues to rise. As domestic production capacity is insufficient to meet market demand, my country’s diethylene glycol market is highly dependent on foreign countries. However, my country’s diethylene glycol production capacity is expanding rapidly. As domestic production capacity continues to be released, diethylene glycol’s foreign dependence will decline.