Mono-Ethylene Glycol Prices Expected to Fall in India

The prices of Mono-Ethylene Glycol (MEG) are expected to follow the downward trend in India which the product has been experiencing for the past three weeks. The prices were assessed at USD 1080 per tonne on October 22 which started to fall and reached USD 1066 per tonne on October 29 further falling to USD 1026 per tonne on November 5. The prices eventually fell to a low of USD 976 per tonne on November 12. Hence the prices have been falling continuously for the past three weeks.

The prices are expected to maintain the downward trend this upcoming week also as there is ample availability of the product. Apart from the sufficient supply, the inventory levels are also high in comparison to the stagnant demand as per the traders.

MEG is a highly demanded industrial chemical offering properties like supreme tenacity, high durability, and hydrophobic nature. MEG can be utilized as a feedstock for industrial process and as well as an ingredient for manufacturing a wide range of products. MEG is primarily used for plastic packaging in cosmetics, pharmaceuticals, and food and beverage industry. It is a major compound for manufacturing of polyester films and fibers and Polyethylene Terephthalate (PET). Other significant applications of MEG owing to its desirable physical properties include its usage as a coolant, antifreeze agent, hydrate inhibitor and heat transfer agent.

The product is commonly prepared by utilizing Ethylene via Ethylene Oxide with the release of two co-products, Diethylene Glycol (DEG) and Triethylene Glycol (TEG). Other feedstocks such as natural gas, glycerin, coal and bioethanol can also be utilized under desired process conditions to manufacture MEG. The demand for MEG is majorly driven by the macro-economic factors and fluctuation in fundamental of the downstream polyester industry. The global demand for MEG stood at around 27 million tonnes in 2020 and is expected to grow at a high CAGR of 4.6% during the upcoming years till 2030.

As per ChemAnalyst, “the prices are expected to continue following the downward trend the upcoming week also with the prices expected to settle at USD 965 per tonne on the week ending November 21. The prices are expected to stabilize in the medium term as the supply of MEG is reducing in China. This might cause an uptick in the prices in the medium term.