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Global MEG market foresees healthy demand

2011-8-4

Global demand for MEG is expected to grow by 7% with India, and China leading the way. India is poised for a double digit growth and China’s consumption of MEG is expected to account for almost 43% of the global demand. Following an increase in demand in US and Europe, MEG market is expecting a rise in demand in the Asian regions as well. Market would remain robust during 2011.

Shutting down of plants is expected to tighten MEG supply. Industry experts predict that tight supply of MEG would only support the market. Low stocks would result in good margins, and polyester production units would keep high operating rates.

They believe that this will tighten the demand of MEG. PTA and MEG are the major feed stocks for polyester production. Plans of shutting down the Nan Ya plan have boosted the prices, but fell later when the plan was postponed.

A strong growth is projected for petrochemicals, and world needs more crackers to keep up with the demand. With demand seen increasing in the key markets, the industry would soon need new capacities.

Source:Fibre2fashion
 
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