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2017 China's MEG market review and outlook for 2018 futures
!!Yang Lixian, Zhejiang Hengyi Petrochemicals Co., Ltd.

2018-03-30 09:40:38
Yang Lixian, Manager of Feedstock Purchase Department from Zhejiang Hengyi Petrochemicals Co., Ltd. delivers her report of 2017 China's MEG market review and outlook for 2018 
Mrs. Yang shows her report into three parts. 

In the first part, she introduces the situation of Hengyi. Hengyi¨s industries are classified into growing industry, emerging industry and core industry, and core industry involves oil refining, petrifaction, and chemical fiber and spin industry. The largest industry is the polyester and it is predicted that by 2020, the polymerization capacity will exceed 10 million mt/yr and monthly MEG consumption may exceed 280kt. 

In the second part, she make a review on the features of MEG market in 2017. Feature 1 is small variety, big volatility, either dive or hike; Feature 2 is supply growth mainly depends on Chinese production, which is largely contributed by coal-based MEG, coupled with slipping import dependency; Feature 3 is de-stocking, high profit!!high profit, high O/R!!high O/R, de-stocking!!uncertainties expands short-term influence. 

In the last part, she makes a forecast in 2018. Firstly, the polyester sector keeps expanding and turns more concentrated, so the influencing power of downstream giants in feedstock sector may grow. Secondly, import volume increases little and increment mainly comes from coal-MEG expansion so import dependency may decrease further. Thirdly, supply forecast and actuality will become a hot topic.
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