Following the holiday period, US Mono Ethylene Glycol (MEG) prices witnessed a balanced trend during the early part of January 2025. This was primarily driven by steady supply and demand dynamics. Production costs remained stable, supported by consistent feedstock prices for Ethylene Oxide (EO). Local markets maintained ample inventories, ensuring balanced supply conditions. Demand levels held steady with stable trading volumes, which helped prevent upward price pressure. The MEG market was also influenced by the soft downstream PET market, where spot prices and fundamentals showed little movement in the first half of January. Trading activity remained subdued as stakeholders focused on normalizing inventories following substantial pre-holiday stockpiling.

Despite the initial balance, MEG prices experienced a significant increase of 2.07% during the week ending January 17, 2025. This price surge was largely attributed to rising production costs, as feedstock Ethylene Oxide prices climbed, driven by an increase in upstream Ethylene costs. Additionally, severe weather conditions played a key role in the escalation. Freezing temperatures, particularly along the Gulf Coast, disrupted operations at several chemical plants. Many facilities in this region, designed for milder climates, struggled to endure prolonged cold. Such conditions led to plant shutdowns and disruptions in power and natural gas supplies, further impacting MEG production.

Multiple ethylene glycol unit turnarounds were scheduled for the first quarter of 2025, contributing to expectations of tighter MEG supply in the weeks ahead. Market traders responded cautiously, accelerating inventory stockpiling to mitigate anticipated price fluctuations.

In the European market, particularly in Germany, MEG prices remained steady throughout January. Market fundamentals showed minimal change as the new year began. Buying activity was subdued, primarily due to the weak trading environment in the downstream PET market. The sluggish recovery of the PET market from the holiday period resulted in limited trading activity for January contracts. Nevertheless, feedstock Ethylene Oxide prices edged upward due to supply disruptions, subtly influencing the MEG market.

In APAC region, the MEG market also exhibited a steady price trend during the early part of January, driven by weak buying activity from the downstream PET and textile sectors. Ample inventory levels further contributed to price stability. However, recent weeks have seen a shift, with MEG prices beginning to rise. This change was influenced by developments in the Middle Eastern market, where key operational units faced maintenance shutdowns, putting pressure on inventories and driving up prices. Additionally, several Middle Eastern MEG plants undergoing maintenance have significantly tightened the global supply chain. Traders in Asia have reported increased purchasing activity to secure available stock, adding further pressure to the supply-demand equation.