Mono Ethylene Glycol (MEG) prices witnessed a varied trend across the global market during the early part of March 2025. Prices for the MEG were mainly influenced by the supply demand dynamics, production costs in the regional market and the fluctuating global crude oil market. During this period, some regions experienced steady price trends while some notices significant price changes due to the unbalanced supply and changing import quantities.

During the period, MEG prices in the European market experienced the significant changes, with the German market experiencing a 4.1% price appreciation. This price escalation in the MEG prices is closely tied with the tight supply conditions and the lower overseas import levels. The supply shortfall resulted in intense competition among the buyers. Traders and suppliers prioritized the contractual customers over the spot market sales. Adding to complexity, congestion at some ports including Bremerhaven and Hamburg further disturbed the supply chain for MEG, resulting in low product availability and the delayed vessel unloading.

In the US market, prices for the MEG remained largely unchanged, coupled with the balanced supply conditions and the weak downstream demand dynamics. Consumption for the MEG remained largely subdued, mainly in the PET segment. Procurement activity for the PET remained sluggish supported by the rising competition between rPET and the virgin PET. Though the operation rates for the Ethylene Glycol remained steady as some producers stabilized the operating rates. Additionally, the market fully recovered from the disruption that occurred in late January. MEG market trend further benefitted from the weak feedstock Ethylene Oxide prices, which fell by 5.36% due to the weak support from the upstream Ethylene prices.

In the Asian-Pacific region, MEG prices showed an overall soft trend, though the price trend varied across the different countries. In the Chinese market, MEG prices remained stable coupled with the ample inventory levels while the demand fundamentals remained weak. Prices for the crucial feedstock Ethylene Oxide remained stable, supporting the stable production cost domestically. Additionally, import prices for the MEG remained stable during the period from the MEA market, mainly Saudi Arabia. However, market participants expected that the supply constraints may emerge as they alter the operation rates and working hours in Ramadan. Demand for MEG in China remained weak particularly from the downstream PET manufacturing sector.

Opposite to the China, prices for MEG in Indonesian and South Korean market declined during the period, notably by 1.85% and 1.8% respectively. Low logistics freight charges and the limited demand from the downstream PET sector mainly shaped the overall market price trend.