US DEG Prices Hold Steady in August H2 Amid Weak Demand and Feedstock Decline

Lucy Terry 02-Sep-2025

Diethylene Glycol (DEG) prices in the US market experienced a period of stability during the second half of August 2025. Though the overall market sentiments for the DEG remained moderate to low. DEG price trend is mainly associated with the low production costs coupled with the declining feedstock Ethylene Oxide prices. At the same time, demand for the DEG remained below expectations, driven by the weakness in the end use construction sector. Additionally, the ongoing market uncertainties related to inflation and tariffs influencing the downstream market sentiment.

Key Highlights-

Low production costs, coupled with the declining feedstock Ethylene Oxide prices.聽
Local inventory for the DEG was ample, despite the shutdown of Lotte Chemical Corporation in Lake Charles, Louisiana.聽
DEG market players maintained conservative pricing strategies amid ongoing trade tariff concern and limited buying interest.聽
With no strong demand for side drivers, the overall market environment for the DEG remained moderate and lacks upward momentum.聽

On the supply side, the inventory levels for the DEG remained enough across the domestic market amid the limited demand from its downstream industries. Production costs for the DEG slightly decreased, as spot prices for crucial feedstock Ethylene Oxide declined by *.** during August H*. Additionally, Lotte Chemical Corporation in Lake Charles, Louisiana, USA declared a force majeure due to power outage for the entire month. Due to...

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