Trend of ethylene oxide (EO) industry in 2025

Price Trend of ethylene oxide (EO) industry in 2025  (Date: Feb 22,2025)

1.What is Ethylene Oxide?

Ethylene Oxide, is abbreviated as EO.

It is a toxic,flammable and explosive organic chemical with the molecular formula C2H4O.

It is one of the simplest epoxides. It is a gas at normal temperature and pressure and has a sweet smell.

It is a colorless and easily flowing liquid with an ether-like odor at temperatures below 10.7℃.

Its vapor is irritating to the eyes and nasal mucosa.

It is miscible with water, ethanol, alcohol and ether.

It has very active chemical properties and can undergo addition reactions with many compounds to form explosive mixtures with air, with an explosion limit of 3% to 100%(by volume).

EO is a highly toxic substance. The allowable amount in the air is 100PPM. Inhaling EO can cause anesthetic poisoning.

2.The application and preparation method

EO is widely used in the chemical industry, especially as an intermediate in the production of various chemicals, such as ethylene glycol, surfactants, detergents, etc.

In industrial production, EO is used to produce ethylene glycol, monomers of polycarboxylate superplasticizers, synthetic detergents, nonionic surfactants, antifreeze agents, polyethers and ethylene glycol products. The vast majority of EO production is carried out through the desorption purification and refinement of ethylene and oxygen, and ethylene and oxygen can also be used to produce ethylene glycol.

Currently, about 60% of EO plants in China are co-produced with ethylene glycol plants. The main methods for preparing EO mainly fall into two categories: the direct oxidation of ethylene and the chlorohydrin method.

3.The capacity of ethylene oxide

In 2024, China's EO production capacity was 9.44 million tons.

In 2023, China's EO production capacity was 8.863 million tons.

From 2023 to 2024, the industry maintained a steady growth but the growth rate slowed down to 8.51%.

The new capacity of 1.7 million tons in 2023, private enterprises contribute 75% of new share, sinopec accounted for 19%.

The production capacity mainly concentrated in East China, South China and Northeast China.

4.Regional distribution

Total share in east China, south China, northeast China is more than 85%, the east China region monopolize by more than 55%, relying on the downstream industry agglomeration and logistics advantages.

The carbon neutral goal to promote green technology research and development, the high-end manufacturing demand levels (such as electronic, pharmaceutical products) to stimulate specialty chemicals development.

5. The Trend of industry development

2010-2019 average annual capacity compound growth rate is16%,

2020-2023 average annual capacity compound growth rate is down to 14%,

In 2024 it is slowed to 8.51%.

The head enterprises through scale (such as the threshold of 50 tons) and integration (form a complete set of ethylene raw material) increase competitiveness, CR10 enterprise production accounted for 60%.

6. Market dynamics at the begining of 2025

The price of EO rose in some regions in the last two weeks of 2025 Feb; The atmosphere is stable and improving.

The East China market executed 7000 yuan/ton, up 100 yuan/ton from the previous month;

The South China market execution 6850-7000 yuan/ton, up 100 yuan/ton;

The central China market executed 7000 yuan/ton, the same as the previous quarter;

The Northeast China market executed 6950 yuan/ton, up 100 yuan/ton from the previous month;

The North China market execution 6950-7000 yuan/ton, up 100 yuan/ton.

(1)Supply: In this week, under the maintenance plan of Gulei and Fude, the supply is still in a low state.

(2)Demand: The demand has gradually improved, and the terminal industry has followed up the purchase as planned; Subsequent overall consumption is expected to increase.

(3)Cost: For Ethylene, the state of short supply is difficult to change in a short time. The increase of maintenance will be digested in the future.

Notes: The information provided is for reference only, not for marketing decision purpose.