HOUSTON (ICIS)--US monoethylene glycol (MEG) is experiencing downward pressure in November as supply is long and demand is soft during the off-peak season.
A source noted that a good amount of material is available on the market, including large bulk volumes.
Peak downstream polyethylene terephthalate (PET) bottle resin consumption has ended with the change of seasons.
US PET prices are primed for decreases over the next few months as key price drivers have turned bearish.
Demand from the antifreeze sector could pick up, with prolonged cold weather set to hit parts of the US at the end of this week.
Domestic spot MEG has been quoted in the mid-30s cents/lb ($661/tonne).
Looking ahead, US MEG will see diminished activity over the next couple of months due to reduced demand and market players retreating for the holidays.
Ongoing tariffs on US imports, along with increased concerns of a slowdown in China's economy, will likely hinder US exports to China during the fourth quarter.
It is heard that Sasol is stocking up on feedstock ethylene for its upcoming ethylene glycol unit in Lake Charles, Louisiana, although this could not be widely confirmed.
ICIS had assessed US October MEG contracts at 40.5-46.5 cents/lb FOB (free on board).
Major glycol producers in the US include Eastman Chemical, Huntsman, Indorama Ventures, LyondellBasell, Nan Ya Plastics, Shell Chemical and MEGlobal.