- Margins remain weak- Producers prefer to make
ethylene oxide





Asian monoethylene glycol imports increased
slightly in March 15, due to restocking. They said that the methanol-PE margin was minus
$274-285/mt for the year, down $43-48/mt from the year. However, there is
little chance of a sharp drop in Asian prices as Asian MEG makers would be less
competitive and reduce their operating rates. Sources
said that a return to positive margins is not possible due to the
uncertain economic environment. Many MEG producers were heard producing
ethylene oxide in their production units. The former has higher margins. Many
producers claimed that it was more profitable to sell ethylene feedstock
rather than make MEG at its current price. Market
participants said that it was more profitable for them to sell ethylene
feedstock than to make MEG at itsb>current prices. Sources said
that this...