- Poor margins delay plants- Expected rebalance in supply on maintenance, new orders



According to prevailing discussions, Asian
monoethylene glycol imports were stable at $600-616/mt on March 28th. MEG prices above $600-620/mt
would make coal-based MEG profitable. Sources
said that the full impact of new MEG capacities was delayed by poor margins. If domestic consumption is low, the new plants could export. In order to recover investments, the plants will most likely
begin rather than not at all. Sources said
that the Asian market will rebalance in near-term on maintenance and
commissioning supplies. The short-term
increase in capacity will likely lower operational rates, but long-term Chinese
demand will push up domestic operational rates and surpass new regional
capacities. This will require imports from other areas, traders stated. Sources said there might be changes in trade flow with...