Chinese MEG demand analysis 
A preview of the ICIS China Monoethylene Glycol (MEG) Annual Study

ICIS has recently launched the latest version of the China MEG Annual Study, an in-depth report of the year’s developments and hot topics with supply/demand outlook for 2015.

6m-8m tonnes/year of new domestic MEG capacity is expected over the next five years in China, however will these be used to produce polyethylene terephthalate (PET)? To give you a glimpse of the type of valuable information provided in the annual study, we have made a section available for you to view.

Downstream demand analysis 

PET remains the major derivative, accounting for 94% of the total consumption, while UPR, antifreeze and glyoxal take up the rest 6%.
Domestic UPR capacities total 3.6m tonnes in 2014, up by less than 6% compared with 2013, according to ICIS. However, the operating rates are low and the output is only around 1.9m tonnes, almost flat from a year ago. Glycol is a major component in the production of UPR. The ratio of MEG consumption is different in different UPR grades, at 6-8% for low-end UPR grades and at 10-12% for high-end grades. Now the low and mid-end UPR grades are dominant in China.
Antifreeze is a cooling liquid contained with special additives, mainly used in the production of liquid-cooled engine cooling system. More than 95% of antifreeze is MEG-based antifreeze liquid. Thanks to freeze-proofing, high boiling point, little volatility, moderate viscosity and good heat stability, MEG is an ideal feedstock for antifreeze. The vehicle volumes are expected to reach 1.4b units in 2014, and demand from the antifreeze for MEG will be around 420,000 tonnes, according to ICIS.
Glyoxal is a colourless or light yellow crystal or liquid, soluble in water, ethanol and ether. It is used in the production of paper, textile, pharmacy and dyeing. Also it can be used to replace formaldehyde. To make one-tonne glyoxal consumes 0.6 tonnes of MEG. The glyoxal market is bearish in 2014, with the domestic output at about 100,000 tonnes. 

Expansion projects in 2014

According to statistics, 4.37m tonnes of new PET capacity will come on stream through 2014.The start-ups of some projects have been postponed to next year because of the prevailing poor margins this year. The total output is expected to be at around 32.23m tonnes by the end of the year, up by only 400,000 tonnes year on year due to reduced operating rates.

PET output by origin

Most PET cargoes are produced in east China, with output to reach around 27m tonnes in 2015. The capacity in south China has been increasing in recent years, with output approaching nearly 4m tonnes. The output in other regions is low, covering less than 4% of the national total.

Interested to find out what else is in the report?

View the online brochure

Comprehensive analysis and forecast for China's MEG market

The ICIS China MEG Annual Study is an in-depth report of the year’s developments and hot topics with a supply/demand outlook for 2015. It provides credible data and analysis to support your annual sales and strategy planning by giving you all of the following:

  • 2014 market overview of Chinese MEG
  • MEG downstream demand analysis by application field and region
  • Regional supply and company profiles (2013-2015)
  • Planned coal-to-MEG capacities and project status
  • Import market analysis and outlook
  • MEG price trend and price driver element analysis 

Key topics covered:

  • New capacities in China, including information of the location, start dates and feedstock
  • The dominance of coal-based MEG in the new capacities
  • Will coal-based MEG be successfully applied in the polyester industry?