MEGlobal Announces Increase in February Price for MEG in Asia
MEGlobal Announces Increase in February Price for MEG in Asia

MEGlobal Announces Increase in February Price for MEG in Asia

  • 17-Jan-2024 3:56 PM
  • Journalist: Shiba Teramoto

MEGlobal, a prominent player in the global production of monoethylene glycol (MEG) and diethylene glycol, has announced the February contract price for MEG in the Asian market, setting it at USD 850 per tonne. This decision represents a modest increment of USD 10 per tonne compared to the January pricing. The terms of this pricing adjustment are based on CFR Asia delivery conditions.

In the prior month, MEGlobal had established the January contract price for MEG in Asia at USD 840 per tonne, maintaining consistency with the December level. The marginal increase for February reflects the company's strategic response to the evolving dynamics within the market.

Monoethylene glycol (MEG), in conjunction with terephthalic acid (TPA), plays a pivotal role in the production of polyethylene terephthalate (PET). MEGlobal, headquartered in Dubai, UAE, has firmly established itself as a key contributor to the global MEG and diethylene glycol (DN) landscape. Since its inception in July 2004, MEGlobal has consistently supplied over 2.5 million tonnes of diesel generators annually to markets worldwide. Diethylene glycol, a critical raw material in the manufacturing of polyester fibers (for textiles and clothing), polyethylene terephthalate (PET), antifreeze, and various other industrial products, underscores its versatile applications.

Operating as a wholly owned subsidiary of Equate Petrochemical Company, MEGlobal has wielded significant influence within the industry. The completion of the sale of Dow Chemical's stake in MEGlobal to Equate Petrochemical Company in December 2015 further solidified MEGlobal's position and aligned with Dow Chemical's strategic optimization of its engagement in Kuwaiti joint ventures.

MEGlobal's decisions regarding contract price adjustments for MEG in Asia are strategic responses to market conditions, supply and demand dynamics, and other pertinent factors. The nominal increase for February is indicative of the company's adaptability to the changing market landscape.

Zooming out to a broader perspective, MEGlobal's role as a provider of essential raw materials underscores its pivotal position within the global supply chain. MEG and diethylene glycol serve as integral components with applications spanning from textile manufacturing to PET production, emphasizing their versatility and significance across diverse industrial sectors.

As MEGlobal steers through market fluctuations, its commitment to delivering quality products and adjusting to industry changes remains evident. The February contract price adjustment exemplifies the company's strategic approach in balancing market competitiveness while upholding its leadership in the global MEG and diethylene glycol production arena. With its headquarters in Dubai and a global reach, MEGlobal's impact extends across regions, contributing to the stability and growth of industries reliant on MEG and diethylene glycol.

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