Opportunities and challenges of MEG market in 2025
——Sun Hua, Manager of Chemical Products Department, Wuchan Zhongda Qianrui Energy Chemical (Zhejiang) Co., Ltd
The report is divided into three parts.
1. MEG Supply Structure. Currently, the pace of domestic production of MEG is slowing, dependence on imports is decreasing year by year, the technology routes are diversifying, and relevant facilities in the polyester industry chain are concentrated in coastal areas. The marginal domestic capacity remains slightly overcapacity.
2. MEG demand situation. The demand for MEG is driven by industries such as textiles and apparel. Most MEG is used in the production of polyester. In recent years, the export volume of MEG has significantly increased. Currently, the supply and demand for MEG are relatively balanced. Whether the demand for MEG can show highlights in the near term will depend on overseas demand. Uncertainties regarding tariff policies make demand predictions more elusive.
3. Opportunities and challenges in MEG trading. This part explained recent trends and structures in the MEG market, term trading methods, and derivatives instruments. Mr. Sun indicated that the end of the concentrated production cycle and the gradual balance of the industry as a whole will bring more opportunities to the market. Flexibly using various derivative tools may yield additional benefits.
