MEG is increasingly being used in plastics industry for the manufacture of polyester fibers and resins, including polyethylene terephthalate.
Mono-ethylene glycol (MEG) prices were seen fluctuating as demand declined in Asia.
Sources informed that as the upstream product prices were rising rapidly, including crude, naphtha and ethylene, the traders stocked up MEG in January, foreseeing the price hike.
With the Chinese Holidays and players having enough stock to last all through February, the sales have drastically gone down.
Further, the sources claim that the prices have now almost reached the peak, where significant change is unlikely.
SABIC is planning to set up it's new 630 kilo ton per annum MEG plant in Al Jubail during the second quarter of 2006.
marketing@alchempro.com
