US Ethylene Glycol Market Faces Reallocating Supply After China Halts Imports

Typical export alternatives for US-based sellers unable to absorb demand previously met by China

Feb. 4, 2026 at 8:39pm

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The US ethylene glycol market is facing challenges in the first half of 2026 as it must reallocate an estimated 1 million metric tons of monoethylene glycol supply that was previously consumed by China. With China halting imports amid deteriorating trade relations, US-based sellers are struggling to find alternative export markets like Turkey, Egypt, and Western Europe that are unable to absorb the lost Chinese demand, leading to a significant drop in MEG spot prices.

Why it matters

The loss of the Chinese market, which previously imported around 1 million metric tons of US MEG annually, has created a major supply-demand imbalance that is putting significant downward pressure on MEG spot prices. This is impacting the profitability of US-based MEG producers and creating challenges as they seek to reallocate this supply to other, much smaller export markets.

The details

Prior to the trade dispute with China, the US exported around 1 million metric tons of monoethylene glycol (MEG) to China annually, which was the world's largest consumer of the product. However, amid deteriorating trade relations, China has halted these imports, leaving US-based sellers scrambling to find alternative export markets. Typical destinations like Turkey, Egypt, and Western Europe are considerably smaller and unable to absorb the demand that was previously met by China. As a result, MEG spot prices fell to an 18-month low of 18 cents/lb FOB US Gulf Coast in April 2025 after remaining rangebound at 21.55-22 cents/lb in the first quarter. Prices did rebound in the second half of May following a force majeure at Lotte Lake Charles, climbing back to 21 cents/lb on June 27 before falling 4 cents, or 21%, from July 3 to Dec. 12, with December spot prices reaching a five-year low.

  • In the first quarter of 2025, MEG spot prices remained rangebound at 21.55-22 cents/lb.
  • In April 2025, MEG spot prices fell to an 18-month low of 18 cents/lb FOB US Gulf Coast.
  • In the second half of May 2025, MEG spot prices rebounded to 21 cents/lb on June 27 following a force majeure at Lotte Lake Charles.
  • From July 3 to Dec. 12, 2025, MEG spot prices fell 4 cents, or 21%, reaching a five-year low in December.

The players

Lotte Chemical

A South Korean chemical company that operates a MEG production facility in Lake Charles, Louisiana.

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The takeaway

The US ethylene glycol market is facing significant challenges as it must reallocate an estimated 1 million metric tons of monoethylene glycol supply that was previously consumed by China. With China halting imports amid trade disputes, US-based sellers are struggling to find alternative export markets, leading to a sharp drop in MEG spot prices and impacting the profitability of domestic producers.