Mono Ethylene Glycol Prices Jump Higher in Asia
- 24-Nov-2021 5:36 PM
- Journalist: Jung Hoon
Mono Ethylene Glycol (MEG) prices climbed higher in Asia on Tuesday. The price rise was triggered by improved regional buying sentiment and limited product supply. The price gain was further supported by the stronger MEG futures on the Dalian Commodity Exchange in China. CFR China prices of MEG were assessed to be USD 670 per tonne levels which showed a rise of USD 10 per tonne from Monday’s assessed levels. CFR South-East Asia MEG prices were assessed higher at the USD 675 per tonne which also showed a day on day increase of USD 10 per tonne. Moreover, the feedstock ethylene prices were assessed to be steady at USD 1135 per tonne.
The reasons for the price hike are the increased demand for MEG in the regional markets of Asia with the rise in the demand for downstream polyester sector. The supply has been short in Asia with major power constraints in China and related lower operating rates. This has caused lower product availability in the Asian market, hence increasing the prices.
MEG is a versatile industrial chemical with high demand due to its properties such as high durability, hydrophobic nature, and high tenacity. MEG is used a feedstock for the manufacturing of several products including Polyester Fibres, Polyester Films, Polyethylene Terephthalate (PET), antifreeze products, Coolants, solvents, etc. Additionally, it is employed in paper, printing inks, leather, fibres treatment and cellophane industries due to its humectant nature. Global MEG demand stood at around 27.64 million tonnes in 2020 and is expected to grow at a CAGR of 4.6% during the upcoming years till 2030.
As per ChemAnalyst, “the prices of MEG which have risen due to increased demand and buying activity and lower product availability are expected to maintain a firm trend during the upcoming week with the prices expected to reach to USD 680 per tonne levels. The demand for MEG is high in the Asian markets and the demand is expected to remain strong given that the demand for downstream sectors is rising in Asia.