For the Quarter Ending September 2024
North America
In Q3 2024, the Mono Ethylene Glycol (MEG) market in North America faced a significant decline in prices, driven by multiple key factors. Weak demand from downstream industries, especially the PET resin sector, exerted substantial pressure on MEG prices. Additionally, the lack of upward cost support from feedstock Ethylene Oxide, along with fluctuating upstream crude oil prices, further contributed to this downward trend. The overall demand for PET in North America also showed a declining trajectory this quarter, compounded by the adverse effects of hurricanes impacting production and logistics.
Mexico, in particular, experienced marked price changes, mirroring the broader negative trend in the MEG market. Seasonal variations, along with the dynamics of supply and demand, played a critical role in these fluctuations. Despite the notable price declines observed in Q3, MEG prices remained elevated, reflecting a 2.5% increase quarter-on-quarter and a 7% rise year-on-year.
By the end of the quarter, the price of MEG in Mexico was reported at USD 483/MT CFR Manzanillo, underscoring the prevailing bearish sentiment and ongoing challenges within the regional pricing environment.
Europe
In Q3 2024, the pricing landscape for Mono Ethylene Glycol (MEG) in Europe saw a significant upward trend, particularly in Germany, where price fluctuations were most pronounced. Several critical factors influenced the overall market, including tight supply conditions, elevated feedstock costs, and steady demand from downstream sectors. Additionally, the volatility of upstream crude oil prices, exacerbated by ongoing geopolitical tensions, played a crucial role in shaping market dynamics. The 16% increase compared to the same quarter last year was largely due to supply constraints and cautious restocking efforts amid economic uncertainties. The quarter also witnessed a 3% rise from the previous quarter in 2024, indicating a gradual but consistent escalation in prices driven primarily by supply-side factors. In Germany, the market exhibited a strong correlation between MEG prices and the costs of feedstocks, especially Ethylene Oxide. By the end of the quarter, the price for MEG reached USD 694/MT FD Hamburg, highlighting a strengthening market sentiment characterized by a steady and persistent price surge throughout the period.
APAC
In Q3 2024, the Mono Ethylene Glycol (MEG) pricing in the APAC region exhibited a mixed trend. During the first two months of the quarter, MEG prices increased significantly, driven by robust demand from the downstream PET market, which was buoyed by peak seasonal consumption. This price escalation was further supported by elevated production costs, high upstream crude oil prices, and rising shipment freight charges amid escalating geopolitical tensions. However, as the quarter progressed, MEG prices began to decline, influenced by excess inventory, accelerated production rates, and decreased demand from both domestic and international markets. Despite this mixed trend, MEG prices remained relatively high compared to the previous quarter, showing a 2% increase, while year-on-year comparisons reflected a 4% rise. By the end of the quarter, the latest price for MEG in China was reported at USD 633/MT FOB Shanghai. This figure underscores the overall declining trend in MEG pricing across the APAC region during Q3 2024, illustrating the complexities and fluctuations within the market landscape.
South America
In Q3 2024, the Mono Ethylene Glycol (MEG) market in South America experienced a significant decline in prices, with Brazil being the most affected. This downward trend can be attributed to several critical factors. A marked decrease in demand from downstream industries, particularly the PET resin sector in the latter half of the quarter, exerted considerable pressure on MEG prices. Additionally, reduced trading activity and cautious purchasing behavior from end-users further weakened market sentiment. Disruptions in the supply chain, including plant shutdowns and logistical hurdles, compounded the decline in MEG prices across the region. Specifically in Brazil, the market reflected the most pronounced price fluctuations, mirroring the overall trend within the region. Seasonal factors and the interplay of supply and demand dynamics played significant roles in shaping these price changes. Despite this decline, MEG prices remained 2.5% higher than the previous quarter, and year-on-year comparisons indicated a 6% increase. By the end of the quarter, the price for MEG was reported at USD 527/MT CFR Santos, highlighting the prevailing negative pricing environment and the challenges facing the industry.
MEA
The third quarter of 2024 witnessed a significant surge in Mono Ethylene Glycol (MEG) prices across the MEA region, driven by several pivotal factors influencing market dynamics. A robust global demand, particularly from the PET manufacturing sector, has been a primary catalyst for this price increase. Additionally, supply constraints, logistical hurdles, and escalating upstream crude oil prices, exacerbated by heightened geopolitical tensions, have collectively applied upward pressure on MEG prices in the region. Saudi Arabia, in particular, experienced the most pronounced price fluctuations, reflecting a notably positive pricing environment. During this quarter, MEG prices surged by 17% compared to the same period last year, indicating strong market performance. Furthermore, a 7% increase from the previous quarter in 2024 underscores the consistent upward trajectory of pricing. By the end of the quarter, the price for Mono Ethylene Glycol was reported at USD 543/MT FOB-Riyadh, reinforcing the overall bullish sentiment in the market. This pricing trend highlights the underlying demand fundamentals and supply-side challenges characterizing the MEG landscape in the MEA region.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the Mono Ethylene Glycol (MEG) market in North America showed a varied pattern. Early in the quarter, prices declined notably due to reduced consumption and high inventory levels. However, the latter half of the quarter saw stability in MEG prices across North America, characterized by steady pricing and balanced market conditions. Several factors contributed to this equilibrium. Significant disruptions in the supply chain, including unplanned plant closures and severe weather events, played a crucial role in influencing market dynamics. These disruptions led to constrained supply as major production facilities were forced to shut down, exacerbating supply chain bottlenecks caused by natural disasters. Despite these challenges, the market maintained overall stability, supported by moderate demand from downstream industries, particularly PET manufacturing. Additionally, stable feedstock prices, especially for ethylene oxide, helped mitigate potential price fluctuations.
In the USA, the market experienced the most significant fluctuations. Seasonal variations in demand typical of Q2 had minimal impact due to well-balanced supply and demand dynamics. Despite global shipping volatility and occasional logistical hurdles, the market demonstrated resilience. Compared to the same quarter the previous year, MEG prices in the USA declined sharply by 19%. However, prices for this quarter were only 5% lower than the preceding quarter of 2024, indicating a downward trend.
Overall, the quarter concluded with MEG priced at USD 452/MT FOB US Gulf in the USA. The pricing environment throughout Q2 2024 remained negative yet stable, reflecting a balanced market sentiment amidst various influencing factors.
APAC
In the second quarter of 2024, the Mono Ethylene Glycol (MEG) market in the APAC region remained relatively stable in terms of prices. This stability was driven by a balanced supply-demand relationship, consistent production levels, and steady consumption rates. Effective inventory management played a critical role as manufacturers maintained optimal stock levels to prevent overproduction. Furthermore, international imports were steady without major disruptions in supply chains. Stable upstream Ethylene prices further supported this equilibrium, shielding MEG prices from external economic fluctuations.
In South Korea, notable price fluctuations were observed, yet the overall MEG market portrayed a stable and dynamic environment. Prices increased moderately by 8% compared to the same quarter last year, with a slight 3% decrease from the previous quarter. These variations were influenced by seasonal adjustments and strategic supply chain management. Notably, prices remained consistent throughout the quarter, with no significant difference between the first and second halves. Steady demand from downstream sectors such as PET manufacturing and textiles, particularly in Polyester Staple Fiber (PSF), contributed to market stability. Key players' proactive inventory management also played a crucial role in balancing the market and minimizing price volatility.
By the end of Q2 2024, MEG prices in South Korea settled at USD 534/MT CFR Busan, indicating a stable pricing environment supported by effective supply chain practices and market equilibrium maintained throughout the quarter. Overall, the MEG market in the APAC region, particularly in South Korea, demonstrated resilience and stability, reflecting positive market conditions.
Europe
In the second quarter of 2024, Mono Ethylene Glycol (MEG) prices in Europe showed a significant upward trend driven by several critical factors. Increasing costs of feedstocks, particularly rising prices of Ethylene Oxide, along with restricted supply due to scheduled plant maintenance and unexpected operational disruptions, were major influences on the market. Geopolitical tensions and fluctuating crude oil prices further heightened production costs. Despite fluctuating demand from the PET market, which exerted varying pressures on the supply chain, MEG prices remained bolstered.
Germany experienced the most notable price fluctuations in Europe during this quarter. The overall trend demonstrated robust upward momentum, reflecting seasonal increases in demand and aligning with broader regional pricing trends. Compared to the same quarter last year, prices surged by a significant 22%, driven by supply constraints and inflationary pressures. From the previous quarter in 2024, prices increased by 4%, indicating a steady growth trajectory amid improving economic conditions. The price difference between the first and second halves of the quarter was minimal at 2.5%, highlighting a stable but positive pricing environment.
By the end of Q2, the latest MEG price in Germany reached USD 675/MT FD Hamburg, encapsulating the quarter's strong upward trend. Overall, the pricing environment remained positive throughout the period, supported by supply constraints, rising feedstock costs, and consistent demand from downstream industries, contributing to a favorable market sentiment.
MEA
The second quarter of 2024 in the MEA region witnessed a significant increase in Mono Ethylene Glycol (MEG) prices, driven by several key factors. Chief among these were disruptions in ocean shipments due to geopolitical issues and port congestion, particularly in major Asian ports. These disruptions led to higher shipping costs, prompting exporters to raise MEG prices. Additionally, the decision by OPEC+ to extend crude oil output cuts into 2025 tightened the supply of crude oil, indirectly influencing MEG prices. These strategic adjustments and market dynamics created a bullish pricing environment for MEG during the quarter.
Saudi Arabia experienced the most pronounced price changes in the region. Overall trends indicated a strong increase in MEG prices, supported by peak summer demand and heightened consumption in downstream PET manufacturing sectors. Seasonal factors, including the Eid festive season, played a significant role in driving up demand. Price movements reflected an upward trajectory, with a 17% increase from Q2 2023 and a slight 1% decrease from the previous quarter in 2024.
By the end of the quarter, the price for MEG in Saudi Arabia stood at USD 513/MT FOB-Riyadh. The pricing environment throughout Q2 2024 has predominantly been positive, characterized by rising demand, strategic supply adjustments, and seasonal consumption patterns. This period solidified a bullish sentiment in the MEG market, illustrating a stable yet upward price trend.
South America
In the second quarter of 2024, the Mono Ethylene Glycol (MEG) market in South America experienced a mixed price trend influenced by significant factors. The early half of the quarter saw prices decline due to high inventory levels and imports at lower prices. However, in the latter half of the quarter, prices stabilized. Market stability was primarily driven by a balanced supply and demand equilibrium, supported by ample inventory levels and steady production. Additionally, stable feedstock costs and controlled freight charges contributed to maintaining price stability throughout the quarter.
Brazil, where the most notable price changes occurred, witnessed a 17% decrease compared to the same quarter the previous year. However, in Q2 2024, there was a marginal 4% decline from the previous quarter, indicating a relatively negative price trend. Importantly, there were no significant fluctuations between the first and second halves of the quarter, reinforcing the overall stable pricing trend.
Closing the quarter at USD 522/MT of MEG CFR Santos in Brazil, the market maintained a positive sentiment with consistent pricing, demonstrating a period of stability and reliability in the MEG market in South America.
For the Quarter Ending March 2024
North America
During the first quarter of 2024, the Mono Ethylene Glycol (MEG) market in North America witnessed a consistent upward trajectory, a trend influenced by several key factors shaping the market dynamics. Primarily, the tight supply of MEG was upheld by low inventory levels of its feedstock, Ethylene Oxide. Additionally, an uptick in upstream Naphtha prices further fueled the ascent of MEG prices. Moreover, heightened demand for downstream products like PET bottles and food packaging film, buoyed by an improved business climate and upcoming festivities, contributed to the overall price surge.
In the Mexican market, MEG prices also followed an upward trajectory throughout the quarter. Supply constraints persisted, compounded by disruptions in logistics and shipping, resulting in escalated freight charges. Despite these obstacles, demand from the domestic automotive sector and PET resin manufacturing industries propelled the price hike.
Overall, the pricing landscape for MEG in North America during Q1 2024 remained favorable, with prices exhibiting continuous growth over the quarter. By the quarter's end, MEG prices in Mexico surged by more than 13% compared to the previous quarter, while witnessing a decline of approximately 24% compared to the same quarter of the previous year.
APAC
The initial quarter of 2024 has marked a period of ascending prices for Mono Ethylene Glycol (MEG) across the APAC region. Various factors have contributed to market price fluctuations, encompassing supply constraints, elevated production expenses, and disruptions in logistics. These elements have fostered bullish market sentiment, driving prices notably upward. The pricing landscape in the APAC region has exhibited positivity, characterized by a consistent upward trajectory in prices. Supply shortages and heightened production costs have exerted upward pressure on prices, while demand has largely remained stable or exhibited marginal growth. The ongoing shipping crisis and disruptions in supply chains have further compounded market dynamics, resulting in escalated costs and reduced demand from downstream sectors. In summary, the initial quarter of 2024 has portrayed a bullish MEG market scenario in the APAC region, marked by steady price escalations. Notably, South Korea has witnessed substantial price fluctuations, with trends reflecting a positive seasonal correlation. Prices in the country surged by 12% compared to the previous quarter, while experiencing a notable 5.5% decrease from the corresponding quarter in 2023.
Europe
The European region has seen a general uptick in Mono Ethylene Glycol (MEG) prices during the first quarter of 2024. Numerous factors have played a role in shaping market prices during this period. Overall, robust demand from downstream sectors like PET bottle and food packaging has driven MEG prices upward. Additionally, the sustained high cost of feedstock, particularly Ethylene Oxide, has provided further impetus to the price surge. In the initial month of the quarter, prices experienced a slight decrease due to lackluster demand from the PET industry during the winter months, resulting in a balanced market environment. Throughout this period, key market players either shut down or scaled back their operations due to severe cold weather conditions. This led to material shortages, prompting companies like Indorama Venture and MEGlobal to raise prices across various regions, ultimately contributing to the overall increase in MEG prices. Germany, in particular, has witnessed notable fluctuations in MEG prices during this quarter. Prices in Germany rose by 3.5% compared to the previous quarter but decreased by approximately 6.5% when comparing the first quarter of 2024 with the same period of the previous year.
MEA
Throughout Q1 2024, the Mono Ethylene Glycol (MEG) market in the MEA region displayed a varied trend, influenced by multiple factors affecting market prices, including supply-demand dynamics, feedstock costs, and seasonal demand patterns. Notably, Saudi Arabia, experiencing notable price fluctuations, witnessed a positive pricing environment. Prices remained robust during the initial two months, driven by MEG supply constraints stemming from the closure of key players amidst heightened downstream demand. However, prices witnessed a decline in the final month of the quarter. The MEG market in the MEA region during Q1 2024 was influenced by diverse factors. Supply-demand dynamics played a pivotal role, with supply constraints and rising demand from downstream industries contributing to price escalations. Additionally, increasing feedstock costs, particularly for Naphtha, exerted upward pressure on MEG prices. Seasonal demand patterns also contributed significantly to driving prices upward, with heightened demand observed during the winter season for applications like antifreeze, further bolstering prices. In Saudi Arabia specifically, the MEG market experienced a positive pricing trend during Q1 2024, witnessing an upward trajectory compared to the same quarter last year, with prices showing a percentage change of 9%. Moreover, there was a notable 9.5% increase in prices compared to the previous quarter in 2024.
For the Quarter Ending December 2023
North America
In Q4 2023, the Mono Ethylene Glycol (MEG) market in North America displayed a moderate market scenario. The supply situation was characterized as low to moderate, indicating a balance between production processes and inventory levels.
On the demand side, the market faced low to moderate demand primarily due to reduced consumption from downstream packaging industries. Anticipating upcoming demand, end-use packaging industries might resume restocking efforts, potentially influencing supply and pricing dynamics. Producers, holding excess inventories, could resort to selling at discounted prices to avoid stockpiling, thereby affecting both supply and pricing trends. There might be a shift in the market as packaging industries consider stocking fresh material, potentially impacting the pricing trajectory.
In Mexico, the MEG market experienced significant changes in pricing, with expectations of price increases in December 2023. The market situation in Mexico was noted as bullish, driven by low supply and high demand. The surge in crude oil prices was identified as a factor that could impact production costs, leading to potential increases in MEG prices. Additionally, insufficient inventory levels might prompt traders to raise prices, while the escalating feedstock Ethylene costs could further influence the overall price trajectory. The latest reported price of Mono Ethyl Glycol (MEG) CFR Manzanillo in Mexico for Q4 was USD 421/MT, indicating a dynamic and evolving market environment.
APAC
In Q4 2023, the Mono Ethylene Glycol (MEG) market in the APAC region demonstrated diverse conditions. The supply of MEG varied from moderate to low, while demand fluctuated from moderate to high. Pricing trends in Taiwan, India, Indonesia, and China were influenced by factors such as the depreciation of Ethylene feedstock costs, escalating feedstock expenses, and anticipated increases in crude oil prices impacting production costs. South Korea experienced significant changes in its MEG pricing trend, characterized by a bullish market situation and low supply, leading to heightened demand and a surge in prices. Specifically, South Korea saw a 2% increase in MEG prices compared to the previous quarter, with no significant change within the current quarter. However, there was a notable -13% change in prices from the same quarter of the previous year. The latest MEG price in South Korea for Q4 2023 stands at USD 489/MT CFR Busan, and no plant shutdowns were reported by market analysts, indicating a stable operational environment.
Europe
In the fourth quarter of 2023, the Mono Ethylene Glycol (MEG) market in the European region exhibited subdued conditions, marked by low to moderate demand and high to moderate supply. Reduced consumption from downstream packaging industries contributed to a bearish market situation. Producers, grappling with excess inventories, may opt for selling at discounted prices to prevent stockpiling, impacting both supply and pricing dynamics. The market faced potential influences from geopolitical conflicts, such as the conflict between Israel and Palestine, which could lead to an expected increase in crude oil prices. This, in turn, might impact the entire PET bottle value chain. Conversely, the depreciating feedstock Ethylene costs could potentially ease MEG prices. In Germany, MEG prices experienced a 2% decrease from the previous quarter, and a further decline of 1.9% is forecasted in December. The demand in Germany is expected to remain lackluster by the end of the year, potentially lowering costs. However, an increase in crude oil prices could counterbalance this, impacting production costs and leading to a potential increase in MEG prices. The latest reported price of Mono Ethylene Glycol (MEG) FD Hamburg in Germany for Q4 is USD 610/MT, reflecting the complex interplay of various factors influencing the market.
MEA
In Q4 2023, the Mono Ethylene Glycol (MEG) market in the MEA (Middle East and Africa) region exhibited diverse trends. While the global supply of raw materials like ethylene remained consistent, the market faced challenges due to increasing energy costs, rising labor expenses, and escalating raw material expenses, contributing to elevated production costs. Despite these challenges, the demand for MEG was moderate to high, driven by heightened purchasing activity from downstream industries. However, the MEA MEG market experienced a bearish trend in Saudi Arabia, a key producer in the region, primarily due to reduced consumption from downstream packaging industries. Despite this, the country witnessed a significant surge in purchasing activity, indicating potential improvements in buying trends. This surge is expected to lead to a potential bullish trend in the Saudi market. Notably, there were no reported plant shutdowns in the region during the quarter, suggesting stable operational conditions. The price trend of MEG in Saudi Arabia exhibited a 2.8% increase, reaching USD 468/MT FOB Riyadh by the end of the quarter. This indicates a dynamic market influenced by various factors, with potential shifts in trends based on both domestic and overseas market dynamics.
