US Mono Ethylene Glycol (MEG) market sentiment shifted in May as softer feedstock pressures and downstream buying prompted re-pricing. Early month activity remained calm, mid-month inquiries from converters stayed muted, and late-month dynamics grew mixed: tighter merchant availability briefly supported sentiment, but a week-on-week correction ended the period. Participants moved from cautious restocking to a defensive stance as spot interest thinned and traders balanced exports with domestic demand. MEG demand was uneven across key end-uses, with the polyester & PET chain remaining the dominant influence. Downstream PET and polyester converters held moderate activity, avoiding aggressive restocking and weighing on spot liquidity. Supply-side factors added nuance: Feedstock Ethylene Oxide and upstream ethylene (spot) softened overall offered limited cost support, compressing upside potential for margins. Upstream energy trends reinforced supplier pricing power, and inventories earlier in the period eased near-term tightness before late-month reemergence. The near-term MEG outlook points to firm to stable conditions, though risks from export flows and restocking remain.
