The price of ethylene oxide will decrease in May 2026. As of May 22nd, the average market price of epoxyethane in China was 7600 yuan/ton, a decrease of 15.56% from the market average price of 9000 yuan/ton at the beginning of the month (5.1).

On May 22, 2026, the ethylene oxide market in East China was executed at a price of 7600 yuan/ton to the outside world; The listed price of ethylene oxide in the South China market is 7500-7600 yuan/ton; The listed price of ethylene oxide in North China is 7500 yuan/ton; The listed price of ethylene oxide in the central China market is 7750 yuan/ton.
Analysis of the reasons for the significant drop in the price of ethylene oxide in May 2026
1、 Cost side: Geopolitical premium fades, ethylene prices plummet sharply
About 70% of the cost of ethylene oxide (EO) comes from ethylene, and the price of ethylene is highly correlated with crude oil. On the early morning of May 22nd, the draft of the US Iran agreement was reached, easing geopolitical risks in the Middle East. Brent crude oil plummeted by more than 6% within the day, driving ethylene prices to rapidly decline. The risk premium previously pushed up by geopolitical conflicts quickly squeezed out, and EO cost support completely collapsed. In April, ethylene prices remained high, and EO companies had a strong willingness to raise prices; Entering May, with abundant ethylene supply and continuous price looseness, EO lost its cost support and prices were passively adjusted.
2、 Supply side: Maintenance falls short of expectations, inventory pressure gradually emerges
In May, multiple sets of EO devices in China were scheduled for maintenance, but the actual reduction in load was limited. The industry’s operating rate remained above 53%, and the overall supply contraction fell short of market expectations. Under the stimulation of high prices in the early stage, the willingness of enterprises to ship has increased, coupled with downstream shutdowns during the May Day holiday, some sources of goods have been delayed, and the pressure of inventory accumulation has gradually emerged, forcing enterprises to lower prices and sell goods.
3、 Demand side: Traditional off-season+downstream weak demand continues to shrink
In May, we entered the traditional off-season for EO demand, with downstream industries such as polycarboxylate superplasticizers and surfactants experiencing a decline in operating rates. Coupled with a slower than expected real estate recovery and dismal terminal orders, downstream industries are resistant to high priced raw materials, and procurement is only maintained for essential needs. The related industries such as polyester and textile have weakened synchronously, indirectly dragging down EO demand. The market has a strong wait-and-see sentiment, and there is a serious lack of buying, forming a negative feedback of “weak demand → price reduction → further wait-and-see”.
4、 Funds and Emotions: High level Profit Taking and Decline Self Strengthening
In March and April, driven by geopolitical conflicts, the price of EO skyrocketed from 5500 yuan/ton to 9000 yuan/ton, accumulating a large amount of profit opportunities. The expectation of geopolitical easing in May has landed, and funds have concentrated and left. Coupled with cost breaks and pessimistic demand, market expectations have turned, and traders have panicked and lowered prices, further amplifying the decline.