11 December 2009 05:33 [Source: ICIS news]
By Prema Viswanathan
DUBAI (ICIS news)--Global demand for monoethylene glycol (MEG) is likely to grow by as much as 6.5% in 2010 from 2009, led by robust domestic demand in China, a senior industry official said late on Thursday.
However, if the US and Europe continue to buy less, it could result in a decline in demand for exports from China, Hanraets told ICIS news on the sidelines of the Gulf Petrochemicals and Chemicals Association (GPCA) forum.
“But what you also need to consider is, with the surge in domestic demand in
The total global demand of MEG, a commonly used intermediate in the production of polyester fibres, is estimated at 18.5m tonnes in 2009.
Hanraets said he was bullish on the growth prospects of China and Asia.
“To me it seems
“The Indian MEG market is barely 1.5m tonnes/year while the Chinese market is 7m tonnes/year, whereas the populations of both countries are more or less the same. So the Indian market has scope to grow much more,” Hanraets added.
While the demand side looks promising, there are worries about the huge volumes of new supply emerging from two new plants in
“However, we are also seeing a wave of consolidations, which could help to balance supply,” he said.
While the earlier consolidations had been in the West, Hanraets said he believed the next round of plant closures could be in
The bogey of protectionism, which had been a hot topic for discussion at the GPCA forum, was unlikely to trouble the MEG industry, he said.
“Asia is very short of MEG, they need MEG from the
The GPCA forum ended on Thursday.
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