DEG (Diethylene Glycol) Price Trend and Forecast 2026-2027

DEG (Diethylene Glycol) Market Overview

DEG (Diethylene Glycol) is a colourless, hygroscopic liquid with the molecular formula C₄H₁₀O₃. It forms as a co-product during ethylene oxide hydration, which creates an unusual supply dynamic: DEG output is governed by MEG production targets rather than by standalone DEG demand. When crackers run hard to meet MEG demand, DEG supply builds. When MEG output is curtailed, DEG availability tightens in step. That co-product relationship is the most important structural feature for anyone tracking the DEG price index.

On the demand side, DEG serves as a chemical intermediate in unsaturated polyester resins, polyurethanes, morpholine, and specialty plasticisers. It is also a core dehydrating agent in natural gas processing. Those end-uses link DEG demand to construction activity, automotive production, manufacturing output, and energy infrastructure investment. This report covers quarterly DEG price developments across North America, Asia-Pacific, Europe, and the Middle East for Q1 2026, Q4 2025, and Q3 2025.

Update: Geopolitical Impact of Iran, US, and Israel War on DEG (Diethylene Glycol) Prices

The conflict that began on February 28, 2026, when coordinated US and Israeli military strikes targeted Iran, introduced a sharp and consequential supply shock into the DEG (Diethylene Glycol) market. The Strait of Hormuz, a critical transit corridor for Gulf petrochemical exports, faced significant disruption, cutting the outflow of DEG from Saudi Arabian coastal terminals. Brent crude rose to USD 94 per barrel by March 9, its highest level since September 2023, and Middle Eastern oil production was partly shut in, as reported in the US Energy Information Administration’s March 10 Short-Term Energy Outlook. For DEG, this translated into tighter spot availability across Asian and European import markets that had been well supplied through the second half of 2025, a material upward shift in ethylene oxide feedstock costs, and a reversal of the persistent supply-side surplus that had weighed on prices across every major trading hub through Q3 and Q4 2025. The Gulf’s dominance as the world’s leading DEG export region meant the Strait disruption had an outsized effect, removing a major source of competitively priced material and handing sellers leverage that the market had not seen for several quarters.

DEG (Diethylene Glycol) Prices for the Quarter Ending March 2026

DEG (Diethylene Glycol) markets entered Q1 2026 on firmer footing than they had exited Q4 2025, supported by recovering industrial demand, rising feedstock costs, and the geopolitical disruption that reshaped Middle Eastern supply flows from late February onward. The quarter marked a turning point after several quarters of sustained price weakness across all major trading hubs.

DEG (Diethylene Glycol) Prices in North America (Q1 2026)

• The US ISM Manufacturing PMI jumped to 52.6 in January 2026, ending twelve consecutive months of contraction and its strongest reading since early 2022, then held at 52.4 in February, with Chemical Products among the expanding industries in both months, per the Institute for Supply Management. The return of manufacturing expansion supported a recovery in downstream resin and coatings procurement that had been largely absent through 2025.
• The prices index in the ISM February report surged to 70.5, the highest reading since June 2022, driven by rising metals costs, tariffs, and supply constraints. Broader input cost pressures filtered through to petrochemical supply chains, supporting firmer DEG offer levels from domestic producers.
• The Strait of Hormuz disruption from February 28 reduced the availability of competitively priced Middle Eastern DEG imports that had been a persistent source of downward pressure on US domestic pricing through 2025. Reduced inbound supply from Gulf terminals improved the position of domestic sellers relative to Q4 2025 conditions.

DEG (Diethylene Glycol) Prices in Europe (Q1 2026)

• Germany’s HCOB Manufacturing PMI moved into expansion territory at 50.9 in February 2026 and strengthened further to 51.7 in March, per S&P Global, its first sustained expansion since June 2022 and its strongest reading in four years. The sector’s return to growth, driven by infrastructure stimulus and recovering new orders, improved industrial DEG offtake from resin and coatings producers.
• Energy costs climbed between 12 and 14 percent in euro terms from the start of January through mid-February, as noted in Hamburg Commercial Bank’s February flash PMI commentary, raising production costs for European DEG manufacturers before the Strait of Hormuz disruption added a further supply-side shock in March.
• The reduction in Middle Eastern import arrivals from late February onward removed a major source of competitively priced supply into Northwest European terminals, tightening the import-dependent segment of the European DEG market that had been consistently well stocked through Q3 and Q4 2025.

DEG (Diethylene Glycol) Prices in Asia-Pacific (Q1 2026)

• Post-Lunar New Year industrial restocking lifted procurement from resin and coatings producers across China, South Korea, and Southeast Asia through January and into February, providing a seasonal demand floor that had been muted in the equivalent period of 2025.
• The Strait of Hormuz disruption sharply reduced the volume of Gulf-origin DEG reaching Asian import terminals from late February onward. Middle Eastern producers, primarily in Saudi Arabia, had been the dominant low-cost import source for the APAC region, and their reduced availability tightened spot supply significantly in a market that had relied on plentiful Gulf arrivals to keep prices in check.
• Ethylene oxide feedstock costs climbed in line with crude oil, lifting the production cost base for regional DEG manufacturers. Rising energy costs across Asia, including higher LNG prices noted by the EIA in its March 10 Short-Term Energy Outlook as a consequence of reduced Strait transit volumes, added to the cost pressure on domestic producers.

DEG (Diethylene Glycol) Prices in the Middle East (Q1 2026)

• Saudi Arabian DEG producers had entered Q1 2026 with stable operating rates and well-stocked export inventories following the elevated output of Q4 2025. January and February saw firm FOB indications as recovering Asian demand provided a more active inquiry base than the subdued Q4 2025 environment.
• From February 28, the military conflict disrupted Strait of Hormuz transit and caused Middle Eastern oil production to fall, as confirmed by the EIA’s March 10 Short-Term Energy Outlook. Coastal terminal operations at Jeddah and Jubail were affected by logistics disruptions, reducing the pace of outbound DEG shipments that would normally have moved into Asian and European markets.
• The conflict introduced uncertainty around the continuity of operations at major Saudi integrated complexes. Producers that previously competed aggressively on FOB price to capture export market share found their position transformed by the supply disruption, with buyers willing to accept higher indications to secure near-term volumes rather than wait for logistics conditions to normalise.

DEG (Diethylene Glycol) Prices for the Quarter Ending December 2025

DEG (Diethylene Glycol) Prices in North America (Q4 2025)

• US DEG prices fell roughly 4.3% quarter-over-quarter in Q4 2025, averaging around USD 682.33/MT on a CFR Texas basis. Consistent import arrivals from Middle Eastern and Northeast Asian producers kept Gulf Coast terminals well stocked, and buyers operating with adequate inventory had no reason to compete aggressively for spot volumes.
• Ethylene oxide feedstock costs held broadly flat through October to December. That stability removed any cost-based rationale for producers to push offers higher, leaving sellers fully exposed to the supply-side pressure coming from import competition.
• Downstream demand from paints, coatings, and resin sectors provided only modest volume support. Procurement stayed need-based through Q4, and year-end destocking by industrial distributors shrank spot buying appetite further through November and December.
• Tariff-related trade friction reduced the competitiveness of US-origin DEG on export markets, which meant surplus volumes that might otherwise have been redirected abroad were instead competing for domestic placement at discounted prices.

Why Did DEG (Diethylene Glycol) Prices Fall in North America in December 2025?

• Ample import arrivals and well-stocked domestic terminals kept supply running ahead of downstream consumption through December. That persistent surplus gave buyers all the leverage they needed.
• Flat EO feedstock costs gave producers no upstream cost justification to hold firm on offers. Seasonal year-end destocking by distributors removed competitive bidding from the market and reinforced the downward close.

DEG (Diethylene Glycol) Prices in Asia-Pacific (Q4 2025)

• South Korean DEG prices fell around 10.8% quarter-over-quarter in Q4 2025, the sharpest regional decline across major trading hubs during the period. The average quarterly transaction price was approximately USD 578.33/MT FOB Busan, reflecting persistent oversupply as Middle Eastern export volumes arrived without sufficient demand-side absorption.
• Construction sector activity, a key indirect driver through its link to polyester resin consumption, stayed subdued across Northeast and Southeast Asia. Automotive sector demand for DEG in antifreeze and coolant formulations did not deliver the seasonal uplift many had anticipated, and procurement from that supply chain remained modest.
• Intense competition among Korean, Chinese, and Middle Eastern suppliers chasing the same downstream customers squeezed trading margins and kept offers under consistent downward pressure through October, November, and December.

Why Did DEG (Diethylene Glycol)) Prices Fall in Asia-Pacific in December 2025?

• Year-end export surges from Middle Eastern producers flooded APAC import terminals with spot volumes that downstream demand simply could not absorb. Sellers discounted aggressively to move material before the quarter close.
• Weak procurement from construction-linked resin producers and automotive supply chains, combined with the complete absence of EO feedstock cost support, left DEG prices with no floor to rest on as Q4 drew to a close.

DEG (Diethylene Glycol) Prices in Europe (Q4 2025)

• German DEG prices declined around 7.5% quarter-over-quarter in Q4 2025, averaging approximately USD 719.00/MT on a spot and contract basis, with Hamburg and Rotterdam as the principal reference points. Ethylene oxide feedstock costs softened through the quarter, reducing the production cost floor for European manufacturers and weakening the cost-side argument for maintaining prior-quarter price levels.
• Terminal inventories across Northern Europe stayed comfortable throughout Q4. Steady Middle Eastern import arrivals supplemented domestic output and kept supply coverage well above near-term demand at every point in the quarter. Any brief price support from logistics disruptions at Hamburg proved temporary and was eliminated once shipping schedules normalised in December.
• Automotive sector demand for DEG in coatings and resin applications reflected ongoing structural challenges in European vehicle manufacturing, and construction-linked demand stayed weak as high financing costs suppressed new project starts.

Why Did DEG (Diethylene Glycol) Prices Fall in Europe in December 2025?

• Uninterrupted Middle Eastern import arrivals and consistent domestic output kept European terminal stocks comfortably above consumption requirements through December, preventing any meaningful spot supply tightening.
• Softening EO feedstock costs cut the production cost floor for European manufacturers, leaving sellers more exposed to import competition. Weak end-use demand from construction and automotive-linked resin producers removed any restocking premium from the market.

DEG (Diethylene Glycol) Prices in the Middle East (Q4 2025)

• Saudi Arabian DEG prices recorded the steepest decline of any global trading hub in Q4 2025, falling roughly 14.9% quarter-over-quarter to an average of approximately USD 599.67/MT. High EO feedstock availability from uninterrupted cracker operations at major Saudi integrated complexes kept DEG production volumes elevated and export-ready inventories well stocked at coastal terminals.
• Asian export demand, the primary outlet for Gulf DEG, stayed subdued through October to December. Slow restocking by Chinese and Southeast Asian resin producers meant the anticipated Q4 procurement uplift never arrived at the expected scale. FOB indications from Jeddah and Jubail drifted progressively lower as sellers competed for a shrinking pool of motivated buyers.
• Year-end purchasing caution across Asian markets, driven by inventory management ahead of December accounting close and uncertain early-2026 demand visibility, further reduced the flow of new spot inquiries into Middle Eastern sellers' order books.

Why Did DEG (Diethylene Glycol) Prices Fall in the Middle East in December 2025?

• Continuously high Saudi Arabian operating rates kept DEG output elevated and export inventories well stocked through December, intensifying supply-side pressure on FOB price levels.
• Weakening export inquiries from Asian importers, combined with rising available volumes, created conditions for accelerated price discounting as sellers prioritised volume placement over price realisation.

Q4 2025 DEG Price Summary (vs Q3 2025)

DEG (Diethylene Glycol) Prices for the Quarter Ending September 2025

DEG (Diethylene Glycol) Prices in North America (Q3 2025)

• US DEG prices dropped approximately 7.74% quarter-over-quarter in Q3 2025, averaging around USD 730.67/MT CFR Texas. Ample import-driven supply, restrained downstream demand, and tariff-related trade friction that blocked export channel access all weighed on the market through July, August, and September.
• EO feedstock costs held flat through Q3, which meant producers had no upstream cost support to fall back on when buyers pushed for lower prices. Surplus volumes that would normally have been exported were redirected domestically, concentrating supply and intensifying seller competition for a limited pool of domestic buyers.
• Demand from paints, coatings, and resin producers stayed moderate, held back by ongoing residential construction weakness and cautious capital spending by industrial buyers. Port congestion and rail logistics delays introduced intermittent uncertainty into prompt delivery schedules through Q3, creating brief episodes of tighter near-dated availability. Those disruptions were not sustained enough to alter the broader downward price trajectory.
• Inventory build at Gulf Coast storage terminals through mid-Q3 gave buyers the option to draw on existing stocks rather than entering the spot market, removing urgency and sustaining downward price drift into September. Most market participants adopted a watchful stance, waiting for downstream restocking to eventually accelerate and provide some relief from oversupplied conditions.

Why Did DEG (Diethylene Glycol) Prices Fall in North America in September 2025?

• Weak procurement from coatings and construction resin sectors, combined with tariff friction that locked US-origin DEG out of export markets, concentrated oversupply domestically and kept prices under sustained pressure through September.
• Flat EO feedstock costs left sellers without any cost-based defence against buyer pressure in a market already weighed down by import competition and building terminal inventories.

DEG (Diethylene Glycol) Prices in Asia-Pacific (Q3 2025)

• South Korean DEG prices were nearly flat in Q3 2025, declining just 0.51% quarter-over-quarter to approximately USD 648.33/MT FOB Busan. This resilience stood out against sharper declines elsewhere, and it came down to supply-side disruptions at key regional facilities, including force majeure declarations at major South Korean integrated producers, which reduced outflows and partially offset the broader market weakness.
• Downstream demand from resins and coatings in Asia-Pacific stayed tepid. Construction activity in China and Southeast Asia was constrained by financing challenges, and buyers maintained a cautious hand-to-mouth procurement approach that limited any premium Korean sellers could command relative to lower-priced Middle Eastern cargoes. Currency dynamics through Q3 provided some additional support that prevented FOB levels from sliding more sharply.

Why Did DEG (Diethylene Glycol) Prices Remain Stable in Asia-Pacific in September 2025?

• Production disruptions at South Korean facilities reduced available supply into the regional market, creating approximate balance between supply and demand and preventing the kind of price decline seen in other hubs.
• Neither side held enough conviction to drive a decisive move. Supply was tighter than normal due to force majeure, but demand was soft enough to prevent any meaningful price uplift, producing the near-flat outcome through September.

DEG (Diethylene Glycol) Prices in Europe (Q3 2025)

• German DEG prices fell roughly 9.23% quarter-over-quarter in Q3 2025, settling at around USD 777.33/MT CFR Hamburg. Oversupply conditions, softening EO feedstock costs, and weak industrial end-use demand all contributed. Middle Eastern import volumes flowed into Northwest European terminals at competitive landed costs throughout the three months, keeping supply well above downstream consumption.
• Germany's construction and manufacturing sectors both signalled weakness, with PMI readings staying in contraction and industrial output declining around 1.0% year-over-year in September. Procurement from automotive coatings and industrial resin producers stayed cautious, with purchasing teams prioritising lean inventory management over any form of forward buying.

Why Did DEG (Diethylene Glycol) Prices Fall in Europe in September 2025?

• Elevated combined supply from European producers and Middle Eastern import arrivals kept market inventories well above the pace of downstream consumption, maintaining a persistent supply-side drag on prices through September.
• Softening EO costs and contractionary PMI readings in Germany's construction and manufacturing sectors removed both cost-side support and demand-side impetus, leaving the market with no catalyst for a price recovery.

DEG (Diethylene Glycol) Prices in the Middle East (Q3 2025)

• Saudi Arabian DEG prices edged just 1.35% lower quarter-over-quarter in Q3 2025, averaging approximately USD 704.67/MT FOB Jeddah. The modest decline reflected steady domestic demand offsetting some of the softness in export-oriented flows. Key producers including Sharq and JUPC maintained consistent operating rates, with volume mix weighted toward contract-based sales to established Asian buyers rather than opportunistic spot trades.
• Export demand from Asia stayed soft through the summer months. Monsoon season across South and Southeast Asia reduced construction site activity and dampened polyester resin procurement, cutting the frequency and scale of repeat procurement orders from regional buyers. Tariff-related uncertainty also discouraged more aggressive forward buying by Asian importers during the quarter.
• Domestic DEG consumption within Saudi Arabia and the broader Gulf region, particularly from gas processing and industrial solvent applications, provided a reliable base load that prevented any steep decline in market clearing activity. Freight and logistics conditions remained efficient out of Jeddah and Jubail, keeping Saudi-origin material competitive on a landed cost basis relative to other regional suppliers.

Why Did DEG (Diethylene Glycol) Prices Edge Lower in the Middle East in September 2025?

• Reduced export inquiries from Asian importers, driven by monsoon-related demand seasonality and tariff uncertainty, softened FOB indications and lowered outbound sales volumes from Saudi terminals through Q3.
• Uninterrupted plant operations kept output steady and prevented any inventory draw. That operational stability was good for supply chain reliability, but it also meant no supply-side friction emerged to support price levels.

Q3 2025 DEG Price Summary (vs Q2 2025)

Key Drivers Influencing DEG (Diethylene Glycol) Prices

1. MEG Co-Production Economics

DEG supply cannot be managed independently of MEG. When integrated facilities run at high rates to meet MEG demand, DEG output builds whether market conditions warrant it or not. That structural feature means DEG oversupply can persist even when direct demand signals are neutral.

2. Ethylene Oxide Feedstock Costs

EO is the upstream input from which both MEG and DEG are derived. When EO costs rise, producers have a cost-based rationale to push DEG offers higher. When EO stays flat or falls, that rationale disappears and sellers are left without a floor to defend against buyer pressure.

3. Middle Eastern Export Volumes

Gulf producers are the dominant source of globally traded DEG. Changes in their operating rates, export logistics, and competitive pricing directly shape delivered cost economics across all major importing regions, particularly Europe and Northeast Asia.

4. Construction and Automotive Demand

These two sectors drive the bulk of downstream DEG consumption through polyester resins, coatings, and antifreeze formulations. Manufacturing PMI trends and construction starts data in China, Germany, and the United States are reliable leading indicators for DEG demand direction.

5. Trade Policy and Tariff Developments

Tariff measures on chemical intermediates can disrupt established trade flows, block export channels for producing regions, and redirect surplus volumes into already-supplied domestic markets, compounding downward price pressure in a way that can be difficult to reverse quickly.

How Expert Market Research Supports DEG Price Monitoring

Expert Market Research: Real-Time DEG (Diethylene Glycol) Price Intelligence and Market Forecasting

DEG prices can move quickly, and the forces behind those moves rarely announce themselves in advance. Expert Market Research delivers continuous DEG (Diethylene Glycol) price intelligence, demand and supply analysis, and forward-looking market forecasts for DEG alongside a broad range of related petrochemicals, glycols, and industrial solvents. Every update comes with a full breakdown of what drove the move, covering EO feedstock dynamics, co-product economics, trade flows, and downstream demand conditions.

Our forecasting models help clients identify optimal DEG procurement windows, manage input cost exposure, and build more resilient supply chain strategies. We track plant shutdowns, force majeure declarations, and capacity additions at DEG-producing facilities globally, flagging supply-side risks before they hit delivered prices at the terminal level.

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