Chinese Poly Tetra Methylene Ether Glycol Exports Surged post Lunar holiday

PTMEG (Poly Tetra Methylene Ether Glycol) exports reached new highs of 6,710 tonnes in February 2022, up 224 percent on the year and 12.2 percent on the month, as demand recovered, but supply was insufficient outside China. The average export unit price was USD 6267/kg. Since Q4 2021, Poly Tetra Methylene Ether Glycol exports have steadily increased, eventually surpassing imports. In February 2022, the net export reached 4,497 tonnes.

Exports increased primarily due to two factors: first, no new capacity was introduced to the global market to ensure supply, and some facilities were withdrawn in 2021. PTMEG became scarce in the worldwide market as a result. Second, following the Lunar New Year holiday, the price of Poly Tetra Methylene Ether Glycol surged globally as crude oil and natural gas prices rose, especially after March. The price of Poly Tetra Methylene Ether Glycol has continued to climb in the worldwide market, but the price of Poly Tetra Methylene Ether Glycol in China has decreased, owing to stable costs and dropping demand as the Lunar New Year approaches. As a result, shipments of Poly Tetra Methylene Ether Glycol from China enjoyed a significant price advantage.

In March, the price of Poly Tetra Methylene Ether Glycol for downstream spandex increased somewhat. Mainstream resource prices were proposed at USD 6464- 6779/MT Ex-ports, discussions for imported materials remained stable at roughly USD 5,700/mt. April cargo offers increased by USD 200 per metric tonne. Downstream spandex plants were operating at total capacity, with several additional units set to begin production in Q2. This suggests that demand for Poly Tetra Methylene Ether Glycol will be strong, but downstream purchasers have shown a lack of interest in high-priced Poly Tetra Methylene Ether Glycol.

Since Q4 of 2021, the average export price of Poly Tetra Methylene Ether Glycol has been above USD 6.2-6.6/kg, owing to a shift in export structure. Poly Tetra Methylene Ether Glycol 1800 exports have increased since Q4 of 2021, and Poly Tetra Methylene Ether Glycol 2000 and Poly Tetra Methylene Ether Glycol 1000 exports with higher unit prices have also increased.

As per ChemAnalyst, “Poly Tetra Methylene Ether Glycol exports are projected to continue high in Q2 2022, as the price of the commodity in the global market is expected to be high in the short term due to high costs, and domestic Poly Tetra Methylene Ether Glycol facilities will focus more on export after local capacity expanded in China.”