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12th chemical fibre forummeg market structure analysis

12th chemical fibre forummeg market structure analysis Source: www.ccfgroup.com
Date: 11-03-2013
Visits: 310
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Wang Xiaolei, Information Manager, CCFGroup, gives his report MEG Market Structure Analysis.

In the report, he reviews the features of MEG market trends in recent years and analyzes the MEG industry structure, including supply, demand, inventory, cost and other factors.

MEG industry structure forecast
MEG supply and demand will be nearly in a balance in 2013 (a little bit tight). Import may be relatively high in H1 while MEG demand and polyester output will increase in H2, the supply may be tighter in H2 of the year.

Influencing factors in current MEG market
Tank inventory, import volume, polyester O/R and POY and FDY inventory all have impact on MEG price.

Taken together, MEG market faces de-inventory situation; Operation of polyester plants restricts demand for MEG; MEG may be below the true value in short run and eyes need to be focused on the support from ethylene; Supply and demand concern may appear in H2 2013.
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