Analysis Of Current MEG Market From Supply And Demand

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MEG

According to customs statistics, China's MEG imports in January 2009 amounted to 479 thousand and 700 tons, an increase of 99 thousand and 500 tons from the previous month, with an average customs unit price of 488.93 US dollars / ton.

The domestic supply side, due to the planned shutdown of Shanghai Petrochemical 1 production line in February 1st, did not resume production until the end of February. Since the shutdown of the Tianjin petrochemical plant in September 2008, the factory failed to start because of poor sales. The average operating rate of Beijing Eastern and Maoming petrochemical companies in February has been maintained at only 70%. Rough estimates of domestic production suppliers' supply in February have shrunk by 26 thousand tons, and domestic production is expected to be 144 thousand tons in February.

Combined import volume and domestic output, the supply of domestic MEG in February was about 623 thousand tons, but the amount of MEG used in other industries in China was about 23%. In February, the MEG for polyester production was about 480 thousand tons.

In terms of demand, according to statistics, the current production capacity of polyester in China is about 23 million tons, and the production capacity of small polyesters is about 2 million tons.

And the confidence conveyed from the port does conform to the current judgement of supply and demand. According to incomplete statistics, the current port port area in Zhangjiagang is about 180 thousand tons, and the Taicang tank farm has about 80 thousand tons (including forecast volume), and the storage area of Ningbo tank area is about 150 thousand tons. The overall MEG inventory level of the East China port has exceeded the astonishing 400 thousand tons, and the market supply and demand relationship has been seriously unbalanced.

From the above analysis, we can see that oversupply has become a "fatal" injury in the development of MEG market, and before the huge inventory is not effectively digested, the MEG market will be hard to shake off the pattern of sluggish and weak market.

But considering the present

Editor in chief: Xu Qiyun