Twice during the course of last year every MEG supplier in the world expected that the spot prices in China would rocket. The first time was in April/June, when the USA and European producers were extremely tight due to cracker turnarounds and several EO plant problems and when the Asian producers were themselves having several operating problems. The polyester fibre demand in China started to improve from March onwards and it seemed that the fibre “season” had once more returned, this time for the autumn and winter clothing collections.
The second time was in August and September, when there were many EO/glycol plants shut down or cut back as well as many PET resin and polyester fibre plants, so that the air pollution around certain cities would be improved ahead of the several major international meetings under the aegis of the G20 summit. The downstream demand throughout much of the polyester fibre chain started to pick up from mid August onwards, in order to fill in the gaps left by these enforced closures and cutbacks.
A subscription to our Ethylene Glycols, EO & EODs Chemical Business Focus can give you further insights like this on the state of the markets world-wide.
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