China Witnesses a 26% Reduction in MEG Imports for September

China's monoethylene glycol (MEG) imports in September experienced a significant decline, with the country importing a total of 655,360 tonnes of MEG during the month. This marked a substantial drop of 26% in comparison to the preceding month.

The primary factor contributing to this decline in September's MEG imports was a sharp reduction in imports from Saudi Arabia, one of China's significant sources of this essential chemical compound. However, imports from the United States sustained a relatively high level, with nearly 180,600 tonnes imported into China in September.

A comparative analysis of MEG imports showed a year-on-year increase in September, although the specific percentage increase was not provided.

On the export front, China exported 414,000 tonnes of MEG to overseas markets during September. This export volume indicated a decrease in comparison to August when China exported 623,000 tonnes of MEG.

It is important to note that a previous report highlighted the challenges China faced in July due to the impact of typhoons. These weather events complicated the supply chain and led to a decrease in the total volume of MEG imports in that month. In July, China imported 551,730 tonnes of MEG, marking an 11.2% decrease compared to June. Furthermore, year-on-year data for July showed a 3.3% decrease in MEG imports into the country. In terms of exports, China exported 397,000 tonnes of MEG to international markets in July, a significant drop from the 1,471,300 tonnes exported in June.

Monoethylene glycol (MEG) plays a pivotal role in the production of polyethylene terephthalate (PET), a widely used polymer in various applications. MEG is commonly used in conjunction with terephthalic acid (TPA) to manufacture PET, which is utilized in the production of bottles, packaging materials, textiles, and more.

A review by ScanPlast highlighted the increased demand for PET, with the estimated consumption of PET witnessing a notable growth rate of 17% in the period from January to August this year compared to the same period in the previous year. During these eight months, the total estimated consumption of PET reached 833,740 tonnes, underscoring the consistent and robust demand for this versatile material.

This development in the MEG import market reflects the dynamic nature of China's chemical and polymer industry, influenced by factors such as international trade, supply chain disruptions, and evolving market demands. The fluctuations in MEG imports underscore the importance of keeping a close watch on the trends and dynamics of the global chemical industry, as they have a direct impact on various sectors and applications, including the production of PET and other essential materials.