Petrochemicals | Mono Ethylene Glycol (MEG) Pricing Overview
Quarterly Update on Global MEG Market
For the Quarter Ending September 2020
Asian MEG market witnessed record breaking high supported by strong polyester demand and tightened inflow of cargoes from the US. Prices of Asian MEG reached a steep high in nearly six months with several production cuts implemented due to high MEG-Naphtha spread. A renowned producer of South Korea delayed the start-up of its plants from a maintenance turnaround due to eroded product margins. As US is the major exporter of MEG to Asia, multiple plant shutdowns implemented in wake of Hurricane Laura further exacerbated this supply tightness. However, with new plants coming onstream in China by the next quarter, ample production of MEG is anticipated to weigh upon its strong market sentiments.
· North America
With revival of the market fundamentals in the automotive industry after getting a huge blow from pandemic and lockdowns, the demand for MEG has witnessed promising gains in the third quarter. However, the production cuts implemented in many MEG plants in the country in fear of Hurricane Laura has plummeted the export potential of the region leading to comparatively lower revenues in the comparison to the previous quarter. Traders are optimistic over increased buying activities from eastern countries on stock piling of product to abate the supply shortage due to China’s National Day holiday in October.
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Company-wise installed capacity, production volume and plant operating efficiency is captured directly from manufacturers. Import and Export volume is captured from government sources and demand for MEG is calculated considering the production, import, export and inventory-levels on the country and regional level markets.
MEG price is correlated with the price trend of its feedstock Ethylene and performance of end use Polyester and Packaging industry.
Basic details and information on financial performance of leading global players in MEG market is presented in a visually captivating manner. Expansion plans and the company’s strategy is also captured to understand the vision and mission of the company to help understand the areas where companies need to focus more.
News & Deals
Daily updates on industry-specific and product-specific news, exclusive primary-based news capturing plant shutdowns/outages/closures, capacity expansions, operating rates, insights on demand-supply situation, awarding of technology licenses, new product launch and deals specifying mergers and acquisitions, strategic investments and disinvestments, to help players capitalize on market opportunity.
ChemAnalyst gathers information through primary research surveys conducted with various MEG manufacturers, spread across domestic and international market, suppliers and dealers/distributors to gain insights into value-chains and demand-supply scenario to assess the market situation. Thorough study of company’s annual reports and secondary sources such as exhaustive search on credible paid databases, including our internal database is done to verify the information. All the collected information is analyzed, evaluated and presented in chronological order to depict a meaningful and clear picture of the concerned market.
Our dedicated team of industry experts comprehensively monitors and analyzes various aspects of the Global MEG market. The team analyzes various industrial segments, strategic viewpoints and provides an analysis of the industry’s performance in the long run. This would enable our clients in efficiently plan their future investments, mitigate risk, understand the cost dynamics and strike out a balance amidst market volatility.
Critical examination of the impact of COVID-19 pandemic on the global supply chains and shift in demand patterns with change in buying behavior of consumers across the globe.
Several ongoing development projects across industries are tracked, followed by the details of major projects in the development stage, which can positively or negatively influence Global MEG market.
Pricing is captured through exhaustive primary interviews with domestic and international manufacturers, traders and importers and customers on daily, weekly, monthly and yearly basis.
Finally, region-specific markets for MEG are analyzed and region-wise demand pattern is tracked.
Mono-Ethylene Glycol (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.