The global Mono-Ethylene Glycol (MEG) market had a roller-coaster week and declined for the fourth week of March 2023 due to an abundance of supply and a slower-than-anticipated demand recovery. As a result, according to ChemAnalyst data, MEG prices in Europe have slightly decreased, with current rates hovering around USD 643/MT FD Hamburg during the week ending 24th March.

There has been a high level of overall enterprise availability for MEG since the beginning of March 2023, and weak trading dynamics have been seen and are anticipated to last through the end of the first quarter of 2023. The demand for MEG is still low, and many suppliers are probably worried that stocks will continue to grow in the upcoming months. However, rising US supply outweighed continuous output reductions in the US market, which led some sellers to liquidate their positions during the week. According to sources, the declining demand in the US and Europe made active offers for US cargoes in Asia.

On the demand side, the MEG market's recovery was still taking longer than anticipated, and Polyester inventories were at greater levels as the decline in western demand hurt China's exports of textiles and clothing. As a result, this week's conversations were minimal as buyers and sellers both chose to wait due to the gloomy market outlook.

On 24th  March, Taiwanese company Nan Ya Plastics, a member of the Formosa Group, stopped producing MEG at lines No. 2 and No. 3 in Mailiao (Taiwan) due to decreased production margins. The duration of the closure of these lines, which can produce 440 and 460 thousand tonnes of MEG annually, is still unknown.

ChemAnalyst anticipates "The decline in MEG prices in the coming days owing to the sluggish demand from its downstream derivative market and a surplus of product availability."