29 March 2010 00:33 [Source: ICIS news]
By Tahir Ikram
SAN ANTONIO, Texas (ICIS news)--The monoethylene glycol (MEG) market in Asia faces a challenge from protectionism and new capacities in the short term, although the long-term outlook is healthy, a senior industry executive said on Sunday.
“Protectionism is a concern,” the executive - who asked not be named - said on the sidelines of the International Petrochemical Conference (IPC) in ?xml:namespace>
Although no anti-dumping duty (ADD) was imposed by China and India on MEG imports recently, the executive said there was “enough noise in the system” to cause concern.
Dumping, under international trade law, occurs when a manufacturer in one country exports a product to another country at a price which is either below the price it charges in its home market or below its cost of production.
The affected producers contend that the charges are baseless, even as producers in
“There is no protectionism in
Demand growth in
According to industry sources, the total global demand for MEG, a commonly used intermediate in the production of polyester fibres that go into clothes, was estimated at 19m tonnes/year.
The global demand growth for MEG was seen at up to 6%, although new capacities in the Middle East and Asia were threatening to keep the market under pressure for a couple of years.
“The new capacity is estimated to be 40% to 50% more than what the world wants,” the executive said, but added the market in
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