12 June 2009 04:00 [Source: ICIS news]
By Salmon Aidan Lee
SINGAPORE (ICIS news)--Indian imports of monoethylene glycol (MEG) have spiked over the past year and the country could be on its way to become the second-largest market after China for the fibre intermediate, buyers and sellers said on Friday.
In February and March, MEG imports into ?xml:namespace>
Just eight months earlier, in July 2008, imports were no more than 3,000 tonnes.
“Formerly, the Indian market was dominated by just one major producer, with not so significant imports from the
But that seemed to be changing, as imports had spiked as much as 90% just comparing the volumes between July and August 2008, which saw imports rising to 26,000 tonnes.
“Many new polyester plants have started up and more would startup soon,” said a source from JBF Industries.
JBF started off as a small, batch polyester producer importing fibre-grade chips just a few years back. Now it is the second largest producer of polyester filament yarns in
“You see not only JBF, we have newcomers like Garden Silk Mill and Bhilosa, we’ve company now,” said a source from Indorama Synthetics, one of the country’s biggest producer of polyester and PET, as well as plants in southeast Asia, the US and Europe.
In 2009, an estimated 1.85m tonnes of new polycondensation capacities would be added in
“The next plant coming up is the one by [Indian Oil Corp], which is not due to be around the first or second quarter of next year,” the Reliance source said.
Hence, the only way to satisfy the growing demand of MEG is to import, said traders.
“There’re not many traders in
In 2010, another 1.85m tonnes/year of polycondensation capacities could be added to the scene.
“I’ve had enquiries from Sumeet Industries, who would be testing their plant and we’ve signed contract with Wellknown,” said a major Japanese trader, who believed that
Most market participants tend to agree, but some had reservations if
So while Indian MEG imports are expected to continue to grow, the market would still be a secondary one, said participants.
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