Ethylene Glycol
DCE (China)
Monoethylene glycol, the other half of polyester and the antifreeze in your car, traded on Dalian alongside PTA.
Top Producers
approximate share of world MEG capacity (indicative)
Main Uses
indicative split of MEG demand by end use
Main use
PET polyester (with PTA), plus antifreeze
structural
Largest consumer
China, more than half of demand
as of 2025
Futures venue
Dalian (DCE), 10 t/lot, yuan/tonne
as of 2026
Price
roughly 4,000 to 4,800 yuan/tonne
2024-2025
Monoethylene glycol (MEG), usually just ethylene glycol, is a colorless, sweet, toxic liquid made from ethylene. It has two big lives. The first is as the partner to PTA: the two combine to make PET polyester, so MEG rides the same textile-and-bottle chain as PTA. The second is the one most people know without realizing it, automotive antifreeze and engine coolant.
China is the largest consumer by far, more than half of world demand, and it both produces MEG (from ethylene and, distinctively, from coal) and imports heavily from the Middle East and North America. The coal-to-MEG route, like coal-to-methanol, is a peculiarly Chinese way of turning domestic coal into a petrochemical normally made from oil and gas.
The futures market is the Dalian Commodity Exchange ethylene glycol contract (ticker EG), launched in 2018, 10 tonnes a lot, quoted in yuan per tonne and physically settled. Together with Zhengzhou PTA it gives the Chinese polyester complex a two-sided hedge on both of its feedstocks. MEG ran roughly 4,000 to 4,800 yuan a tonne (about 550 to 650 dollars) through 2024 and 2025.
How It Trades
| Venue | Dalian Commodity Exchange (DCE) |
| Benchmark contract | DCE ethylene glycol future (ticker EG), launched 2018 |
| Contract size | 10 metric tonnes per lot |
| Price terms | Chinese yuan per tonne |
| Settlement | Physical delivery in China |
| Typical curve | Driven by ethylene and coal costs, polyester operating rates, and import flows |
| Liquidity | Active on DCE; the twin of ZCE PTA for hedging the polyester chain |
Supply and Demand
Top producers
- China: large ethylene-based and coal-based output, plus heavy imports
- Saudi Arabia and the Middle East: big gas-based export plants
- United States: ethane-based production
- Other Asia: Taiwan, South Korea
China leads consumption and a growing share of production, including coal-to-MEG. Shares approximate.
Top consumers
- China: more than half of world demand
- India and Southeast Asia: growing polyester output
- Global antifreeze and coolant markets
Major uses
- PET polyester (with PTA), the dominant use
- Automotive antifreeze and engine coolant
- Industrial heat-transfer fluids
What Moves the Price
- Ethylene and coal costs (the two production routes)
- Chinese polyester operating rates and textile demand
- Import flows from Middle East and North American gas-based plants
- PET bottle and packaging demand
- Antifreeze demand seasonality
Moments That Made the Market
2018
DCE launches ethylene glycol futures, completing the Chinese polyester-chain hedge with PTA.
2010s
China builds coal-to-MEG capacity to cut import reliance.
2020s
Oversupply across the polyester chain keeps MEG margins under pressure.
What Changed Since the 2010 Handbook Era
- China added coal-to-MEG to reduce dependence on Middle East imports.
- DCE MEG and ZCE PTA together became the price-setters for world polyester.
- The polyester chain's overcapacity pinned MEG margins low.