China Mono-Ethylene Glycol (MEG) Price Value Uplifts as Crude Oil Market Rebounds

Shanghai, China: According to recent analysis, the Mono-Ethylene Glycol (MEG) price in China and Southeast Asia has been increasing marginally owing to the changing Crude Oil value. Though demand for Polyethylene Terephthalate (PET) bottles from the packaging sector have weakened, its market flourishes due to high orders from the textile industry. Thus, Mono-Ethylene Glycol (MEG) price increased by 1% in the Asian market.

Crude Oil prices have rebounded on the back of lowering inventories and rising demand for gasoline in the United States. The change in Mono-Ethylene Glycol (MEG) price value can be justified with the help of its feedstock Ethylene market, which has been affected by the changing Crude oil values. Crude oil prices rose today after the Energy Information Administration reported a decline in Crude oil inventory by 4.5 million barrels. The lowering crude oil inventories have pressurized its downstream derivative market, leading to its rate hike. Furthermore, the U.S. Federal Reserve increased its interest rate, and the dollar declined in order to reduce inflation in the market.

On-demand side, downstream Polyester fabric units are performing well in expectation of high orders in the festival season. At the same time, a distributor selling both import and local materials complained that buyers limited their purchases of regional Polyethylene Terephthalate (PET) due to inflated price levels. Sellers concurred that this is a precarious situation for the European PET market as spot sales are meager while producers struggle to cope with elevated Feedstock prices, which are not likely to drop soon considering still strong demand for gasoline and declining availability.

In addition, Hami Guanghui and Zhongke of the Zhanjiang region unexpectedly shut their Mono-Ethylene Glycol (MEG) units. In contrast, Yankuang Rongxin delays its restart of the Mono-Ethylene Glycol (MEG) plant. Reliance Industries Limited (RIL), the largest producer of Mono-Ethylene Glycol in India, revised its prices for MEG, influenced by fluctuation in China's market value.

As Per ChemAanalyst, " The price for Mono-Ethylene Glycol (MEG) may not have a significant change in the market considering the cost situation, which is not likely to ease soon. However, the approaching festive season is expected to lift demand from downstream Textile industry further. Thus, analysis suggests of price hike in Mono-Ethylene Glycol (MEG) market in the forthcoming weeks."