Zhejiang, China: According to the ChemAnalyst database, Mono Ethylene Glycol (MEG) prices have been stable for a few days, which is expected to remain buoyant, hit by the fear of surging demand for crude derivative products as China plans to ease some restrictions in Shanghai.

Market reports cited that “The Mono-Ethylene Glycol market, taking a cue from the oil price, is currently struck by the global supply-side pressure and resumption of pandemic restriction in China which have been on backfoot leading it to settle at the same rate as previous trading days.”

Furthermore, tight monetary policy by the Central bank to cut down fuel taxes in order to dampen inflationary pressure had loosened the market for crude oil derivatives. Still, soaring demand from the United States and China, amidst a weakening dollar rate, helped crude oil prices to marginally rise on 23rd May, 2022.

A source from Jiangsu and Zhejiang reported, “Low demand from downstream polyester industries along with surplus inventories to combat consumer’s requirement has immobilized the trend of Mono-Ethylene Glycol in Asia-Pacific Region.”

Meanwhile, heightened demand for its upstream Ethylene Oxide (EO) from the healthcare sector as a sterilization agent for medical equipment is paving the demand for ethylene oxide, the raw material for mono-ethylene glycol. In addition, sources said that the demand for mono-ethylene glycol from the packaging sector is growing mainly in the beverage and water bottle industry. The PET (Polyethylene terephthalate) bottle manufacturing industry accounts for half of the ethylene glycol demand for its production of Polyethylene Terephthalate bottles.

According to ChemAnalyst Analysis, “The prices for Mono -Ethylene Glycol is predicted to remain unchanged for coming weeks. Saudi Basic Industries Corporation, known as SABIC, maintains its Mono-Ethylene prices for June unchanged, a source confirmed. Thus, ChemAnalyst also anticipates it to remain constant in Asia.