For the Quarter Ending September 2024
North America
In Q3 2024, the Mono Ethylene Glycol (MEG) market in North America faced a significant decline in prices, driven by multiple key factors. Weak demand from downstream industries, especially the PET resin sector, exerted substantial pressure on MEG prices. Additionally, the lack of upward cost support from feedstock Ethylene Oxide, along with fluctuating upstream crude oil prices, further contributed to this downward trend. The overall demand for PET in North America also showed a declining trajectory this quarter, compounded by the adverse effects of hurricanes impacting production and logistics.
Mexico, in particular, experienced marked price changes, mirroring the broader negative trend in the MEG market. Seasonal variations, along with the dynamics of supply and demand, played a critical role in these fluctuations. Despite the notable price declines observed in Q3, MEG prices remained elevated, reflecting a 2.5% increase quarter-on-quarter and a 7% rise year-on-year.
By the end of the quarter, the price of MEG in Mexico was reported at USD 483/MT CFR Manzanillo, underscoring the prevailing bearish sentiment and ongoing challenges within the regional pricing environment.
Europe
In Q3 2024, the pricing landscape for Mono Ethylene Glycol (MEG) in Europe saw a significant upward trend, particularly in Germany, where price fluctuations were most pronounced. Several critical factors influenced the overall market, including tight supply conditions, elevated feedstock costs, and steady demand from downstream sectors. Additionally, the volatility of upstream crude oil prices, exacerbated by ongoing geopolitical tensions, played a crucial role in shaping market dynamics. The 16% increase compared to the same quarter last year was largely due to supply constraints and cautious restocking efforts amid economic uncertainties. The quarter also witnessed a 3% rise from the previous quarter in 2024, indicating a gradual but consistent escalation in prices driven primarily by supply-side factors. In Germany, the market exhibited a strong correlation between MEG prices and the costs of feedstocks, especially Ethylene Oxide. By the end of the quarter, the price for MEG reached USD 694/MT FD Hamburg, highlighting a strengthening market sentiment characterized by a steady and persistent price surge throughout the period.
APAC
In Q3 2024, the Mono Ethylene Glycol (MEG) pricing in the APAC region exhibited a mixed trend. During the first two months of the quarter, MEG prices increased significantly, driven by robust demand from the downstream PET market, which was buoyed by peak seasonal consumption. This price escalation was further supported by elevated production costs, high upstream crude oil prices, and rising shipment freight charges amid escalating geopolitical tensions. However, as the quarter progressed, MEG prices began to decline, influenced by excess inventory, accelerated production rates, and decreased demand from both domestic and international markets. Despite this mixed trend, MEG prices remained relatively high compared to the previous quarter, showing a 2% increase, while year-on-year comparisons reflected a 4% rise. By the end of the quarter, the latest price for MEG in China was reported at USD 633/MT FOB Shanghai. This figure underscores the overall declining trend in MEG pricing across the APAC region during Q3 2024, illustrating the complexities and fluctuations within the market landscape.
South America
In Q3 2024, the Mono Ethylene Glycol (MEG) market in South America experienced a significant decline in prices, with Brazil being the most affected. This downward trend can be attributed to several critical factors. A marked decrease in demand from downstream industries, particularly the PET resin sector in the latter half of the quarter, exerted considerable pressure on MEG prices. Additionally, reduced trading activity and cautious purchasing behavior from end-users further weakened market sentiment. Disruptions in the supply chain, including plant shutdowns and logistical hurdles, compounded the decline in MEG prices across the region. Specifically in Brazil, the market reflected the most pronounced price fluctuations, mirroring the overall trend within the region. Seasonal factors and the interplay of supply and demand dynamics played significant roles in shaping these price changes. Despite this decline, MEG prices remained 2.5% higher than the previous quarter, and year-on-year comparisons indicated a 6% increase. By the end of the quarter, the price for MEG was reported at USD 527/MT CFR Santos, highlighting the prevailing negative pricing environment and the challenges facing the industry.
MEA
The third quarter of 2024 witnessed a significant surge in Mono Ethylene Glycol (MEG) prices across the MEA region, driven by several pivotal factors influencing market dynamics. A robust global demand, particularly from the PET manufacturing sector, has been a primary catalyst for this price increase. Additionally, supply constraints, logistical hurdles, and escalating upstream crude oil prices, exacerbated by heightened geopolitical tensions, have collectively applied upward pressure on MEG prices in the region. Saudi Arabia, in particular, experienced the most pronounced price fluctuations, reflecting a notably positive pricing environment. During this quarter, MEG prices surged by 17% compared to the same period last year, indicating strong market performance. Furthermore, a 7% increase from the previous quarter in 2024 underscores the consistent upward trajectory of pricing. By the end of the quarter, the price for Mono Ethylene Glycol was reported at USD 543/MT FOB-Riyadh, reinforcing the overall bullish sentiment in the market. This pricing trend highlights the underlying demand fundamentals and supply-side challenges characterizing the MEG landscape in the MEA region.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the Mono Ethylene Glycol (MEG) market in North America showed a varied pattern. Early in the quarter, prices declined notably due to reduced consumption and high inventory levels. However, the latter half of the quarter saw stability in MEG prices across North America, characterized by steady pricing and balanced market conditions. Several factors contributed to this equilibrium. Significant disruptions in the supply chain, including unplanned plant closures and severe weather events, played a crucial role in influencing market dynamics. These disruptions led to constrained supply as major production facilities were forced to shut down, exacerbating supply chain bottlenecks caused by natural disasters. Despite these challenges, the market maintained overall stability, supported by moderate demand from downstream industries, particularly PET manufacturing. Additionally, stable feedstock prices, especially for ethylene oxide, helped mitigate potential price fluctuations.
In the USA, the market experienced the most significant fluctuations. Seasonal variations in demand typical of Q2 had minimal impact due to well-balanced supply and demand dynamics. Despite global shipping volatility and occasional logistical hurdles, the market demonstrated resilience. Compared to the same quarter the previous year, MEG prices in the USA declined sharply by 19%. However, prices for this quarter were only 5% lower than the preceding quarter of 2024, indicating a downward trend.
Overall, the quarter concluded with MEG priced at USD 452/MT FOB US Gulf in the USA. The pricing environment throughout Q2 2024 remained negative yet stable, reflecting a balanced market sentiment amidst various influencing factors.
APAC
In the second quarter of 2024, the Mono Ethylene Glycol (MEG) market in the APAC region remained relatively stable in terms of prices. This stability was driven by a balanced supply-demand relationship, consistent production levels, and steady consumption rates. Effective inventory management played a critical role as manufacturers maintained optimal stock levels to prevent overproduction. Furthermore, international imports were steady without major disruptions in supply chains. Stable upstream Ethylene prices further supported this equilibrium, shielding MEG prices from external economic fluctuations.
In South Korea, notable price fluctuations were observed, yet the overall MEG market portrayed a stable and dynamic environment. Prices increased moderately by 8% compared to the same quarter last year, with a slight 3% decrease from the previous quarter. These variations were influenced by seasonal adjustments and strategic supply chain management. Notably, prices remained consistent throughout the quarter, with no significant difference between the first and second halves. Steady demand from downstream sectors such as PET manufacturing and textiles, particularly in Polyester Staple Fiber (PSF), contributed to market stability. Key players' proactive inventory management also played a crucial role in balancing the market and minimizing price volatility.
By the end of Q2 2024, MEG prices in South Korea settled at USD 534/MT CFR Busan, indicating a stable pricing environment supported by effective supply chain practices and market equilibrium maintained throughout the quarter. Overall, the MEG market in the APAC region, particularly in South Korea, demonstrated resilience and stability, reflecting positive market conditions.
Europe
In the second quarter of 2024, Mono Ethylene Glycol (MEG) prices in Europe showed a significant upward trend driven by several critical factors. Increasing costs of feedstocks, particularly rising prices of Ethylene Oxide, along with restricted supply due to scheduled plant maintenance and unexpected operational disruptions, were major influences on the market. Geopolitical tensions and fluctuating crude oil prices further heightened production costs. Despite fluctuating demand from the PET market, which exerted varying pressures on the supply chain, MEG prices remained bolstered.
Germany experienced the most notable price fluctuations in Europe during this quarter. The overall trend demonstrated robust upward momentum, reflecting seasonal increases in demand and aligning with broader regional pricing trends. Compared to the same quarter last year, prices surged by a significant 22%, driven by supply constraints and inflationary pressures. From the previous quarter in 2024, prices increased by 4%, indicating a steady growth trajectory amid improving economic conditions. The price difference between the first and second halves of the quarter was minimal at 2.5%, highlighting a stable but positive pricing environment.
By the end of Q2, the latest MEG price in Germany reached USD 675/MT FD Hamburg, encapsulating the quarter's strong upward trend. Overall, the pricing environment remained positive throughout the period, supported by supply constraints, rising feedstock costs, and consistent demand from downstream industries, contributing to a favorable market sentiment.
MEA
The second quarter of 2024 in the MEA region witnessed a significant increase in Mono Ethylene Glycol (MEG) prices, driven by several key factors. Chief among these were disruptions in ocean shipments due to geopolitical issues and port congestion, particularly in major Asian ports. These disruptions led to higher shipping costs, prompting exporters to raise MEG prices. Additionally, the decision by OPEC+ to extend crude oil output cuts into 2025 tightened the supply of crude oil, indirectly influencing MEG prices. These strategic adjustments and market dynamics created a bullish pricing environment for MEG during the quarter.
Saudi Arabia experienced the most pronounced price changes in the region. Overall trends indicated a strong increase in MEG prices, supported by peak summer demand and heightened consumption in downstream PET manufacturing sectors. Seasonal factors, including the Eid festive season, played a significant role in driving up demand. Price movements reflected an upward trajectory, with a 17% increase from Q2 2023 and a slight 1% decrease from the previous quarter in 2024.
By the end of the quarter, the price for MEG in Saudi Arabia stood at USD 513/MT FOB-Riyadh. The pricing environment throughout Q2 2024 has predominantly been positive, characterized by rising demand, strategic supply adjustments, and seasonal consumption patterns. This period solidified a bullish sentiment in the MEG market, illustrating a stable yet upward price trend.
South America
In the second quarter of 2024, the Mono Ethylene Glycol (MEG) market in South America experienced a mixed price trend influenced by significant factors. The early half of the quarter saw prices decline due to high inventory levels and imports at lower prices. However, in the latter half of the quarter, prices stabilized. Market stability was primarily driven by a balanced supply and demand equilibrium, supported by ample inventory levels and steady production. Additionally, stable feedstock costs and controlled freight charges contributed to maintaining price stability throughout the quarter.
Brazil, where the most notable price changes occurred, witnessed a 17% decrease compared to the same quarter the previous year. However, in Q2 2024, there was a marginal 4% decline from the previous quarter, indicating a relatively negative price trend. Importantly, there were no significant fluctuations between the first and second halves of the quarter, reinforcing the overall stable pricing trend.
Closing the quarter at USD 522/MT of MEG CFR Santos in Brazil, the market maintained a positive sentiment with consistent pricing, demonstrating a period of stability and reliability in the MEG market in South America.
For the Quarter Ending March 2024
North America
During the first quarter of 2024, the Mono Ethylene Glycol (MEG) market in North America witnessed a consistent upward trajectory, a trend influenced by several key factors shaping the market dynamics. Primarily, the tight supply of MEG was upheld by low inventory levels of its feedstock, Ethylene Oxide. Additionally, an uptick in upstream Naphtha prices further fueled the ascent of MEG prices. Moreover, heightened demand for downstream products like PET bottles and food packaging film, buoyed by an improved business climate and upcoming festivities, contributed to the overall price surge.
In the Mexican market, MEG prices also followed an upward trajectory throughout the quarter. Supply constraints persisted, compounded by disruptions in logistics and shipping, resulting in escalated freight charges. Despite these obstacles, demand from the domestic automotive sector and PET resin manufacturing industries propelled the price hike.
Overall, the pricing landscape for MEG in North America during Q1 2024 remained favorable, with prices exhibiting continuous growth over the quarter. By the quarter's end, MEG prices in Mexico surged by more than 13% compared to the previous quarter, while witnessing a decline of approximately 24% compared to the same quarter of the previous year.
APAC
The initial quarter of 2024 has marked a period of ascending prices for Mono Ethylene Glycol (MEG) across the APAC region. Various factors have contributed to market price fluctuations, encompassing supply constraints, elevated production expenses, and disruptions in logistics. These elements have fostered bullish market sentiment, driving prices notably upward. The pricing landscape in the APAC region has exhibited positivity, characterized by a consistent upward trajectory in prices. Supply shortages and heightened production costs have exerted upward pressure on prices, while demand has largely remained stable or exhibited marginal growth. The ongoing shipping crisis and disruptions in supply chains have further compounded market dynamics, resulting in escalated costs and reduced demand from downstream sectors. In summary, the initial quarter of 2024 has portrayed a bullish MEG market scenario in the APAC region, marked by steady price escalations. Notably, South Korea has witnessed substantial price fluctuations, with trends reflecting a positive seasonal correlation. Prices in the country surged by 12% compared to the previous quarter, while experiencing a notable 5.5% decrease from the corresponding quarter in 2023.
Europe
The European region has seen a general uptick in Mono Ethylene Glycol (MEG) prices during the first quarter of 2024. Numerous factors have played a role in shaping market prices during this period. Overall, robust demand from downstream sectors like PET bottle and food packaging has driven MEG prices upward. Additionally, the sustained high cost of feedstock, particularly Ethylene Oxide, has provided further impetus to the price surge. In the initial month of the quarter, prices experienced a slight decrease due to lackluster demand from the PET industry during the winter months, resulting in a balanced market environment. Throughout this period, key market players either shut down or scaled back their operations due to severe cold weather conditions. This led to material shortages, prompting companies like Indorama Venture and MEGlobal to raise prices across various regions, ultimately contributing to the overall increase in MEG prices. Germany, in particular, has witnessed notable fluctuations in MEG prices during this quarter. Prices in Germany rose by 3.5% compared to the previous quarter but decreased by approximately 6.5% when comparing the first quarter of 2024 with the same period of the previous year.
MEA
Throughout Q1 2024, the Mono Ethylene Glycol (MEG) market in the MEA region displayed a varied trend, influenced by multiple factors affecting market prices, including supply-demand dynamics, feedstock costs, and seasonal demand patterns. Notably, Saudi Arabia, experiencing notable price fluctuations, witnessed a positive pricing environment. Prices remained robust during the initial two months, driven by MEG supply constraints stemming from the closure of key players amidst heightened downstream demand. However, prices witnessed a decline in the final month of the quarter. The MEG market in the MEA region during Q1 2024 was influenced by diverse factors. Supply-demand dynamics played a pivotal role, with supply constraints and rising demand from downstream industries contributing to price escalations. Additionally, increasing feedstock costs, particularly for Naphtha, exerted upward pressure on MEG prices. Seasonal demand patterns also contributed significantly to driving prices upward, with heightened demand observed during the winter season for applications like antifreeze, further bolstering prices. In Saudi Arabia specifically, the MEG market experienced a positive pricing trend during Q1 2024, witnessing an upward trajectory compared to the same quarter last year, with prices showing a percentage change of 9%. Moreover, there was a notable 9.5% increase in prices compared to the previous quarter in 2024.
For the Quarter Ending December 2023
North America
In Q4 2023, the Mono Ethylene Glycol (MEG) market in North America displayed a moderate market scenario. The supply situation was characterized as low to moderate, indicating a balance between production processes and inventory levels.
On the demand side, the market faced low to moderate demand primarily due to reduced consumption from downstream packaging industries. Anticipating upcoming demand, end-use packaging industries might resume restocking efforts, potentially influencing supply and pricing dynamics. Producers, holding excess inventories, could resort to selling at discounted prices to avoid stockpiling, thereby affecting both supply and pricing trends. There might be a shift in the market as packaging industries consider stocking fresh material, potentially impacting the pricing trajectory.
In Mexico, the MEG market experienced significant changes in pricing, with expectations of price increases in December 2023. The market situation in Mexico was noted as bullish, driven by low supply and high demand. The surge in crude oil prices was identified as a factor that could impact production costs, leading to potential increases in MEG prices. Additionally, insufficient inventory levels might prompt traders to raise prices, while the escalating feedstock Ethylene costs could further influence the overall price trajectory. The latest reported price of Mono Ethyl Glycol (MEG) CFR Manzanillo in Mexico for Q4 was USD 421/MT, indicating a dynamic and evolving market environment.
APAC
In Q4 2023, the Mono Ethylene Glycol (MEG) market in the APAC region demonstrated diverse conditions. The supply of MEG varied from moderate to low, while demand fluctuated from moderate to high. Pricing trends in Taiwan, India, Indonesia, and China were influenced by factors such as the depreciation of Ethylene feedstock costs, escalating feedstock expenses, and anticipated increases in crude oil prices impacting production costs. South Korea experienced significant changes in its MEG pricing trend, characterized by a bullish market situation and low supply, leading to heightened demand and a surge in prices. Specifically, South Korea saw a 2% increase in MEG prices compared to the previous quarter, with no significant change within the current quarter. However, there was a notable -13% change in prices from the same quarter of the previous year. The latest MEG price in South Korea for Q4 2023 stands at USD 489/MT CFR Busan, and no plant shutdowns were reported by market analysts, indicating a stable operational environment.
Europe
In the fourth quarter of 2023, the Mono Ethylene Glycol (MEG) market in the European region exhibited subdued conditions, marked by low to moderate demand and high to moderate supply. Reduced consumption from downstream packaging industries contributed to a bearish market situation. Producers, grappling with excess inventories, may opt for selling at discounted prices to prevent stockpiling, impacting both supply and pricing dynamics. The market faced potential influences from geopolitical conflicts, such as the conflict between Israel and Palestine, which could lead to an expected increase in crude oil prices. This, in turn, might impact the entire PET bottle value chain. Conversely, the depreciating feedstock Ethylene costs could potentially ease MEG prices. In Germany, MEG prices experienced a 2% decrease from the previous quarter, and a further decline of 1.9% is forecasted in December. The demand in Germany is expected to remain lackluster by the end of the year, potentially lowering costs. However, an increase in crude oil prices could counterbalance this, impacting production costs and leading to a potential increase in MEG prices. The latest reported price of Mono Ethylene Glycol (MEG) FD Hamburg in Germany for Q4 is USD 610/MT, reflecting the complex interplay of various factors influencing the market.
MEA
In Q4 2023, the Mono Ethylene Glycol (MEG) market in the MEA (Middle East and Africa) region exhibited diverse trends. While the global supply of raw materials like ethylene remained consistent, the market faced challenges due to increasing energy costs, rising labor expenses, and escalating raw material expenses, contributing to elevated production costs. Despite these challenges, the demand for MEG was moderate to high, driven by heightened purchasing activity from downstream industries. However, the MEA MEG market experienced a bearish trend in Saudi Arabia, a key producer in the region, primarily due to reduced consumption from downstream packaging industries. Despite this, the country witnessed a significant surge in purchasing activity, indicating potential improvements in buying trends. This surge is expected to lead to a potential bullish trend in the Saudi market. Notably, there were no reported plant shutdowns in the region during the quarter, suggesting stable operational conditions. The price trend of MEG in Saudi Arabia exhibited a 2.8% increase, reaching USD 468/MT FOB Riyadh by the end of the quarter. This indicates a dynamic market influenced by various factors, with potential shifts in trends based on both domestic and overseas market dynamics.
For the Quarter Ending September 2023
North America
In the third quarter of 2023, the market for monoethylene glycol (MEG) experienced a decline, owing to the reduced demand from downstream industries such as Polyester as well as Polyethylene Terephthalate (PET) and bearish consumer sentiments. This was due to a decrease in export orders, as the impact of high inflation affected consumer confidence, causing consumers to reduce their spending. Furthermore, disruptions in the supply of MEG in the US market were observed due to a tight labor market. However, the reduced demand from the downstream sector did not lead to significant disruptions in the supply chain. Additionally, the presence of available inventories exerted downward pressure on commodity prices, as manufacturers were selling their products without substantial profit margins. Furthermore, the Producer Price Index (PPI) for August decreased, as reported by the US Bureau of Labor Statistics, suggesting that producers thought commodity prices were falling. Market participants observed a similar circumstance in September 2023, and this has negatively impacted goods consumption.
APAC
In the third quarter of 2023, the Mono-Ethylene Glycol (MEG) market in the Asia-Pacific region experienced a mixed sentiment. Prices saw a decline in the first half of the quarter, mainly due to low demand from the Polyester and Polyethylene Terephthalate (PET) Bottle industries. Traders and downstream players were also worried about the increasing stocks, and because of this, there was no high enthusiasm for restocking. However, in the latter half of the quarter, MEG prices in the Chinese market witnessed a slight increase. This rise was attributed to the higher production costs resulting from the increased cost of Naphtha. Strong demand from the polyester industry and disruptions caused by Super Typhoon Doksuri in China, which led to power outages and production halts, further supported the price increase. Additionally, Sinopec Zhongke (Guangdong) Refining and Chemical, situated in Guangdong, China, with total annual capacity of 400,000 metric tons for Mono-Ethylene Glycol, underwent a maintenance turnaround starting from the beginning of July 2023.
Europe
Throughout the third quarter of 2023, the price of monoethylene glycol (MEG) increased in the European market. This price surge was primarily a result of higher demand from downstream industries, which were taking more MEG for their processes. The increased demand significantly contributed to the upward trajectory of MEG prices during this period. The price increase was further supported by the higher prices of Naphtha, a key feedstock to produce MEG. The cost of Naphtha, which is closely related to the price of crude oil, experienced an upturn, leading to higher production costs for MEG. These elevated production costs were reflected in the market prices of MEG. Meanwhile, the MEG market had a sufficient supply of materials. However, it encountered challenges in the form of weather-related disruptions. Heatwaves and heavy rainfall in Germany led to fluctuations in the water level of the Rhine River, a significant waterway for transportation and trade in Europe. These fluctuations in the river's water level had a direct impact on the imports of MEG from other markets.
MEA
The third quarter of 2023 saw a consistent rise in the price of monoethylene glycol (MEG). This increase was primarily attributed to growing demand from downstream industries, which placed upward pressure on MEG prices. This upward movement was primarily driven by the persistent cost pressure arising from higher-priced feedstock Naphtha. In the upstream sector, the price of crude oil reached its highest point. This increase was a consequence of a joint decision by Saudi Arabia and Russia to extend their voluntary supply cuts until the end of the year. This extension caused concerns among investors regarding potential shortages, particularly as the winter demand season approached. Despite these global factors affecting the upstream segment, the domestic demand for Mono-Ethylene Glycol demand from downstream industries in the polyester sector remained relatively stable. Downstream procurement efforts were primarily concentrated on immediate needs, reflecting a moderate level of demand. Furthermore, a significant petrochemical company based in Saudi Arabia, Yanbu National Petrochemical (Yansab), suspended its operations, including Ethylene production, due to technical disruptions that began on August 14th and were expected to continue into early September.
For the Quarter Ending June 2023
North America
Mono Ethylene Glycol (MEG) prices fell throughout the second quarter. In the first half of the quarter, market participants were struggling with unsold stocks and opted for price adjustments. On the other hand, producers reduced run rates to meet modest demand. In addition, despite these poor fundamentals, the market was supported by high producer inventories and the sluggish global economy, which continued to have a significant impact on consumer demand. As a result, in response to the subdued demand environment, companies cut back on their purchasing activities and inventories and reduced their operating rates, which put further downward pressure on purchasing costs. According to the Federal Reserve Economic Data (FRED), the Consumer Price Index (CPI) rose from 303.294 in May to 303.841 in June, indicating that US annual inflation rose in June. Finally, weighed down by the economic uncertainty, the price of MEG fell and settled at USD 559/MT FOB US Gulf in June 2023.
APAC
The price of Mono Ethylene Glycol (MEG) declined throughout the second quarter. A major South Korean producer put further downward pressure on the market by issuing a tender to sell its 6,000 tonnes of MEG in June at a discounted price. The increase in inventories and a slowdown in downstream procurement by the polyester and packaging industries further dampened buying enthusiasm. In addition, analysts reported that supply chains from the US and Saudi Arabia had continued to improve and that production costs had eased as a result of the fall in the price of ethylene and crude oil. In addition, market transactions were mostly based on immediate needs, as terminal operators were not very enthusiastic about entering the market. Furthermore, South Korea's consumer price index rose 2.7% year-on-year in June 2023, easing for the fifth consecutive month to its lowest level since September 2021, supporting the central bank's move to pause its tightening cycle earlier this year. Finally, the price of MEG settled at USD 492/MT CFR Busan.
Saudi Arabia
In the Saudi Arabian market, the price of MEG collapsed throughout the second quarter of 2023. During the first half of Q2, crude oil prices fell on the back of gloomy global economic forecasts. However, due to the lack of demand, producers reduced their prices. At the same time, buying activity from Europe and the sub-continent had declined, dampening buying interest. On the supply part, logistics were operating smoothly, but sluggish downstream demand created huge stocks in the warehouses. However, inflationary pressure had weakened consumer spending, thus weakening the demand in the region. From a demand perspective, the demand from downstream industries, specifically the packaging sector, was not strong enough to support an uptrend in MEG prices. Although, some manufacturers in the end-use beverage and bottling sectors had already started to secure material for upcoming orders. Meanwhile, Saudi Arabia's inflation rate rose to 2.8% in May, according to government data, weighing on consumer spending. Finally, the price of MEG fell to settle at USD 426/MT FOB Riyadh.
Europe
The European Mono Ethylene Glycol (MEG) declined throughout the second quarter due to low demand and an oversupply of the material. Industry experts attribute this decline to overstocking in the packaging sector, indicating a saturated market in the European market. The run rate of MEG units remained optimal as upstream ethylene supply increased and market inventories increased slightly. However, the Verdi strike on 4 May in protest against higher salaries had an impact on logistics operations, but freight rates remained low. However, it had little impact on the market as a whole due to weak demand and adequate stocks in the domestic market. Demand from downstream industries, particularly the packaging sector, was also not strong enough to support an upward trend in MEG prices. Meanwhile, monthly European producer prices fell by 0.9% in May, highlighting the challenges facing the economy in reviving demand and restoring economic growth. Finally, the price of MEG fell to settle at USD 529/MT FD Hamburg.
For the Quarter Ending March 2023
North America
During the start of Q1 2023, both the price of feedstock Ethylene and the market for Mono-Ethylene Glycol (MEG) increased as a result of healthy purchasing activity from downstream industries. However, prices seemed to be decreasing in the second half of the quarter as a result of huge inventories and low offtakes from the downstream packaging sector, consequently, despite the fact that producers allegedly had large inventories of material and were likely to reduce their margins in order to initiate sales. The demand for MEG material from the downstream PET bottles industries was still low, and there was no improvement even after some relaxation in the prices. As a result, the US market for MEG was witnessed fluctuating throughout the Q1 of 2023.
APAC
Asia’s Mono-Ethylene Glycol (MEG) market recovered during the week as supply cuts in China further supported the pricing. There was a tight supply availability of material as several integrated MEG units in China had either shut down or were expected to shut down amid persistently poor margins. In the meantime, downstream industries in Jiangsu and Zhejiang had reduced their operating rate to about 70%. Thus, amidst the tight supply of material and the volatile crude oil market, MEG prices trended upward. Additionally, in the second half of February, Fund Energy had a 10-day maintenance schedule for their 500 kt/year MEG plant. Satellite Petrochemical also shut down its 900kt/year MEG facility at the end of January for approximately 15 days of maintenance. Zhejiang Petroleum & Chemical likewise planned to reduce the operating rate of its MEG plant to around 60% in mid-February due to the turnaround of one of its crackers. As a result, the MEG market in Asian countries fluctuated, with pricing settling at USD 669/MT FOB Shanghai during March.
Europe
The price of Mono-Ethylene Glycol (MEG) on the German market increased as a result of strong polyester sector demand in the first half of the quarter. The second half saw pressure from the fundamentals of weak demand and oversupply on the European MEG market, which in turn put pressure on the European Ethylene value chain. Production rates were low, between 70% and 80%, as producers tried to counteract the consequences of the weak demand. As a result, there was a general lack of purchasing activity throughout the entire value chain, with extremely low end-use consumption. As a result, at the end of the quarter, the German market for Mono-Ethylene Glycol appeared bearish.
For the Quarter Ending December 2022
North America
A slowing economy's weak demand highlighted the significant inventory overhang and kept export and local pricing under pressure. Port closures and shortened port operation hours caused delays in cargo imports and exports in the USA. The need to restart port activity was made even more urgent by Hurricane Ian, which extended shipping delays and forced ships to dock at ports on the East and Gulf Coasts while the West Coast struggled with supply-chain problems, labor disputes, and a shortage of storage space. The combined effects of Hurricane Ian and the mild weather across the rest of the US reduced demand. Fear of a recession has enveloped the US market, lowering demand for MEG in the area. Meanwhile, the reduction in demand from downstream PET Bottles and the Polyester sector has caused MEG prices to stabilize in the region as inventories were limited amongst the manufacturers.
APAC
The downstream operating rate fell, and the accumulated inventories at warehouses pressurized the end-use industries as the inventories piled up. However, because offtakes in Taicang and Zhangjiagang were both 6,000 tonnes during October, the operating rate remained steady. The local market's MEG supply was stable, and some facilities had planned to even reopen after the first half of Q4. There was the restart of the 300,000-ton units in Inner Mongolia and the 600,000-ton units in Sanning, Hubei. As a result, it was noticed that the domestic Ethylene Glycol supply recovered, thus reducing the burden on pricing. In conclusion, the cost of MEG in South Korea was roughly USD 587 per MT CFR Busan during November.
Europe
Due to moderate demand and volatile natural gas prices, LyondellBasell had lowered its operating rates to 60% in Germany for feedstock ethylene, thus reducing the supply of Ethylene. Meanwhile, consumers' sentiments were collapsing under the weight of inflation as rising energy prices and inflation reduced margins and decreased demand. Additionally, the increase in the European economy caused by growing inflation rates has reduced the production capacities of MEG producers as well as the spending power of consumers on polyester and downstream packaging. Owing to the above-mentioned reasons, MEG Price in Europe witnessed a partial increment throughout Q4 and settled at USD 689/MT FD Hamburg during December.
For the Quarter Ending September 2022
North America
North America witnessed slow growth in the MEG market in the third quarter of 2022. The price change was mainly due to the changing consumer sentiments toward the product. Higher interest rates, slower growth, and a softening labor market were all that served the slow market. Meanwhile, the region's demand from the downstream PET resin and polyester sector was weak. Supply chains have remained a cause of concern for US manufacturers this quarter. Logistics constraints and port congestions on US Gulf Coast have further worsened the supply dynamics, weakening the market sentiments.
APAC
China, the prominent importer, witnessed low demand since the start of the third quarter. This was due to the economic slowdown in China, as Pandemic related lockdown had disrupted the market dynamics. Meantime, confidence weakened slightly due to concerns over virus outbreaks and relatively subdued consumer demand. As for the inventory in East China's main ports, port inventory had piled up amidst a smooth material supply. In addition, the MEG facility at Weihe Binzhou Chemical was shut down in August for 20–30 days for maintenance. Furthermore, Shaanxi Yanchang Petroleum also shut down its 100kt/year LNG-fed syngas-based MEG unit for maintenance which lasted for around a month. According to the statistics, several cargoes were waiting at the ports to be delivered between 29th August and 4th September.
Europe
Since the start of the third quarter, Mono-Ethylene Glycol prices in the European market have declined. The low water level on the river Rhine and the low coal supply for power plants had caused havoc in production units. Thus, stable to low inventory levels were reported. While reports also mentioned that Nearly 20 vessels were stuck in traffic along the Rhine River in Germany after a vessel's sudden engine failure caused delays in shipping, which also pushed up the freight costs by 18% from North America to North Europe. Also, High inflation kept demand below seasonal expectations, while the high inventory level led to a price decline in the domestic market throughout Q3.
For the Quarter Ending June 2022
North America
The North American market witnessed a price increment for Mono-Ethylene Glycol (MEG) throughout the second quarter. Feedstock ethylene glycols, glycol ethers, and polyols markets observed unprecedented volatility, backed by the firm crude oil market price. Downstream demand for Polyethylene Terephthalate (PET) bottles from the packaging sector and high inquiries from the textile sector for Polyester Films kept prices firm. Meanwhile, the Crude oil market also contributed to its pricing trend, as an unstable crude oil market ruled its feedstock ethylene oxide market. Various manufacturers like BASF, SABIC, and The Dow Chemical Company are the major players in the United States. Therefore, the Mono-Ethylene Glycol market rose and hovered around USD 868/MT FOB US Gulf during June 2022.
APAC
Mono-Ethylene Glycol (MEG) Prices declined throughout the quarter in China, disrupted by the supply and low demand amid Covid-Restrictions. The tumbling crude oil futures drove MEG prices even lower, with WTI Crude Oil hovered at USD 107.04/MT On 18th May. Feedstock Ethylene had declined on the back of low demand. Yangmei Shouyang and a Woneng unit with a production capacity of 200 KTPA and 300 KTPA in Shanxi were shut down, foreseeing weaker sales from the downstream Polyester and Polyethylene Terephthalate (PET) bottle market. Therefore, during the month ending June, the price for MEG settled at USD 712/MT FOB Shanghai. In Contrast, the Indian market saw an increment in the first half, which dipped in the second half of Q2. Furthermore, the slowdown in fiber demand and reduction in textile utilization weakened the Mono Ethylene glycol (MEG) prices. Reliance Industries Limited and Indian Oil Corporation Limited also revised their quotation, foreseeing the dull offtakes from downstream industries. Consequently, the price for MEG in India hovered around USD 799/MT Ex-Mumbai during June 2022.
Europe
In Europe, Mono-Ethylene Glycol (MEG) prices flourished throughout the second quarter. Since crude oil was observed skyrocketing, mainly affected due to the low production of Crude oil by OPEC+ nations and tight supply. Further, prices of petrochemical-derived products rose after EU sanctions on Russian oil imports. Demand for products remained strong alongside high offtakes from Polyethylene Terephthalate (PET) bottle and Polyester sectors. The operating rate of downstream industries remained high throughout the quarter, constantly pressuring the end-user manufacturer to increase their margins. Therefore, considering the above reasons and the rising feedstock ethylene market, the price for MEG in Europe rose and assessed around USD 1108/MT CFR Hamburg during June 2022.
For the Quarter Ending March 2022
North America
In North America, the Mono-Ethylene Glycol (MEG) market witnessed a stable to weak trend in the first half of Q1 but increased by 6% in the second half of Q1. The US market saw weak demand from downstream textile industry during the supply disruption caused by the Russia-Ukraine war, but the market improved later as supply eased. However, higher freight charges and port congestion kept the surge in prices with high overseas market orders. Demand for durable products increased in consumer goods such as food containers and bottles, leading to high offtakes of MEG. MEG prices increased in March, which settled at USD 725/MT FOB US Gulf (USA).
Asia Pacific
The Mono-Ethylene Glycol market increased throughout the first quarter due to increased demand from downstream industries. On the other hand, soaring crude oil prices have resulted in significant cost pressure on downstream derivatives. As a result, Mono-Ethylene Glycol (MEG) prices have risen since the first quarter. In India, MEG prices were estimated to be USD 883 per MT Ex-Mumbai. In China, the MEG market fluctuated throughout the first quarter, with prices dropping in the first half due to low demand from downstream industries and supply disruptions limiting product supply to the overseas market. Later, the market improved with ease in supply amidst healthy demand. As a result, the price increased by 1% to USD 855 FOB Shanghai.
Europe
In Europe, the Mono-Ethylene Glycol market declined in the first half of Q1 but then increased by 1% due to market stability. The aggravating situation between Russia-Ukraine caused a weak demand for MEG in the first quarter which resulted in the price drop. Downstream industries such as the Polyethylene Terephthalate and textile did not witness much demand, leading to bearish market sentiments. Later, fluctuation in crude oil prices globally impacted Mono-Ethylene Glycol production costs, resulting in a marginal increase in its trend, and hovered at USD 1031/MT CFR Hamburg in March.
For the Quarter Ending December 2021
North America
MEG market sentiment remained stable in the North American region where ample production and stagnant demand from downstream Polyester sector kept prices rangebound throughout the quarter. Feedstock ethylene prices stabilized after displaying strong volatility in Q3 as upstream natural gas prices show consistency after crossing USD 5 per MMBTU in October. Mono Ethylene Glycol prices increased in October and reached USD 837 per MT on FOB basis, however demand of MEG declined towards H2 of Q4 and consequently prices dipped to USD 683 per MT in December.
APAC
Increased exports of Mono Ethylene Glycol (MEG) into Indian domestic market from Saudi Arabia amid strong inventory levels resulted in oversupply which worsened MEG market sentiment in October. Lukewarm demand from downstream polyester further deteriorated market sentiment in H2 of Q4. MEG ended the year on weakened note where prices fell from INR 74910 per MT in October to INR 59620 per MT in December on Ex-location basis. In China, weak demand support from downstream polyester and ease in feedstock prices amid declining crude and coal prices resulted in weakened market sentiment for MEG throughout Q4 of 2021. MEG prices dropped from USD 1000 per MT in October to USD 841 per MT in December on FOB basis.
Europe
Skyrocketing upstream Natural gas prices kept an upward cost pressure on feedstock ethylene which in turn increased the cost of production of MEG throughout the quarter. Demand from downstream polyester and PET also remained robust in the last quarter which further prompted market participants to keep the prices strong for available MEG in the European markets. Price of MEG increased from USD 850 per MT in October to USD 970 per MT in early December on FD basis. Exports of MEG to Europe from Asia also remained sluggish due to high freight charges across Mediterranean route.
For the Quarter Ending September 2021
North America
In North America, MEG prices showcased a steep climb during Q3 2021. As by the end of August, several manufacturers were forced to shut their plants ahead of the Ida hurricane in the US Gulf Coast for almost two weeks, as apart of the contingency plan that led to a setback in the MEG production rates in the region. Major Ethylene producers like Dow, Taft and Shell in Louisiana also imposed a turnaround at their production plants which consequently hampered the production of MEG. Besides, the demand from the downstream Polyester Films and PET manufacturers remained firm throughout the quarter. Hence, constrained availability and the high demand fumed the prices of MEG during the third quarter. FOB-US Gulf Monoethylene Glycol prices settled at USD 870/Ton in September.
Asia
In Q3 2021, MEG prices witnessed rose in the Asian markets backed by the limited supplies and the strong demand from the downstream PET, and Polyester film manufacturers. In China, MEG market encountered a hike in the pricing trend due to the congestion on the several ports of China and lower production rates in the latter half of the quarter backed by energy crisis. In India, prices of MEG marked positive gains following the spillover effect as MEG exports from China booked for Europe, as well as the surging feedstock values in effect of the tremendous rise in the crude oil prices. In addition, the rise in the offtakes from the downstream sectors also sent ripples to the prices of MEG. Ex-Kandla Monoethylene Glycol prices reached USD 823.44 per MT in September showcased a marginal rise since July.
Europe
In the European market, a modest rise in the values of MEG was observed during the third quarter. Delayed imports from Asia due to the congestion on the ports of China coupled with the shortage in the shipping containers aided the hike in the pricing trend of Monoethylene Glycol in Europe. Moreover, high freight charges and firm demand also sent ripples to the prices of MEG in this quarter. MEG spot prices FCA-Hamburg were assessed at USD 970 per MT in September.
For the Quarter Ending June 2021
North America
Prices of MEG climbed up consistently throughout the quarter across North America region, backed by improved demand from downstream sector, while the availability remained low to satisfy the overall need of the domestic market of USA. Major manufacturers tried to ramp up their plant utilisation rates, which were running on low capacity since previous quarter due to unfavourable weather conditions. In addition, Lotte Chemicals witnessed an unplanned plant turnaround during the month of May, due to some technical issue in their Louisiana plant. Meanwhile, overall supply activities remained tight throughout the quarter in USA, while demand remained high from downstream PET manufacturers. Therefore, prices of MEG rose from USD 1364/MT to USD 1440/MT in the April-June timeframe in USA.
Asia
MEG demand varied country over Country in Asia during this quarter. In China, demand for MEG from domestic market remained modest to firm from downstream PET manufacturers, while having firm availability to satisfy their domestic needs. Moreover, major China based manufacturers booked huge cargoes for Europe in the meantime. While Indian MEG market struggled with low prices due to infirm demand in effect of pandemic in the country. In addition, after slipping to its lowest, prices kept fluctuating during the month of June due to low ample stock availability and fluctuating demand from domestic and international market. Therefore, after couple of fluctuations, prices of MEG settled at USD 745/MT during final week of June in India.
Europe
Europe witnessed firm demand for MEG during this period. Europe slapped anti-dumping duty on manufacturers of Middle East during May, which opportune Asian manufacturers to export their cargoes to European buyers. Thus, a large amount of cargo was also booked by China based manufacturers to satisfy the overall demand. In addition, European countries also struggled with fuming freight cost that exacerbated the overall scenario for MEG across the region.
For the Quarter Ending March 2021
North America
North American MEG production was disrupted due to US gulf storm, which halted more than 68% of the total upstream Ethylene production of US. Several major MEG plants like Indorama Ventures with an annual capacity 358,000 MT of MEG, Lotte chemicals with capacity 700,000 MT/year, MEG Global with a capacity of 750,000 MT and few others were shut due to the freezing storm. These shutdowns narrowed the production of MEG across the region and led to a global shortage. Thus, the prices of MEG fluctuated with the price trend of upstream Ethylene, which hovered around USD 1155 per MT during February 2021. Later during end of march the prices of MEG and upstream Ethylene stopped accelerating, as the US production activities started to resume.
Asia
Demand for MEG across Asia remained firm but supply remained tight which supported its prices. Narrowed production and lower imports from the US and premium imports from the European countries considerably contributed to increase the prices of MEG across the region. Plants like Sanjiang fine Chemicals with MEG annual production capacity around 380,000 MT declared a maintenance turnaround while Far Eastern Union Petrochemical Ltd. with MEG production capacity 500,000 MT annually also reduced its plant capacity from 100% to 90% to safeguard margins. In addition, Chinese lunar holidays stopped the production of several plants and that reduced their inventories level, it is estimated that average prices of MEG across Asia increased by more than 12% after Lunar holidays. However, in India, CFR prices rose by 35.17% from January and settled at USD 814.47 per MT by the end of the quarter.
Europe
Europe had an opportunity to fill in the supply gaps created by the US market amid the winter storm disruption in February which affected the overall production from Central America. After the US Gulf Coast storm, export pressure on European manufacturers increased majorly from Asian countries. Moreover, increased freight and container cost also impacted the prices of upstream Ethylene, which ultimately led to rise in prices of MEG across the region.
For the Quarter Ending September 2020
North America
With revival of the market fundamentals in the automotive industry after getting a huge blow from pandemic and lockdowns, the demand for MEG has witnessed promising gains in the third quarter. However, the production cuts implemented in many MEG plants in the country in fear of Hurricane Laura has plummeted the export potential of the region leading to comparatively lower revenues in the comparison to the previous quarter. Traders are optimistic over increased buying activities from eastern countries on stock piling of product to abate the supply shortage due to China’s National Day holiday in October.
Asia
Asian MEG market witnessed record breaking high supported by strong polyester demand and tightened inflow of cargoes from the US. Prices of Asian MEG reached a steep high in nearly six months with several production cuts implemented due to high MEG-Naphtha spread. A renowned producer of South Korea delayed the start-up of its plants from a maintenance turnaround due to eroded product margins. As US is the major exporter of MEG to Asia, multiple plant shutdowns implemented in wake of Hurricane Laura further exacerbated this supply tightness. However, with new plants coming onstream in China by the next quarter, ample production of MEG is anticipated to weigh upon its strong market sentiments.
