MEG demand estimation has been revised up

MEG demand estimation has been revised up. Polyester polymerization rate remains around 94% recently. Despite short-term output reduction, polyester polymerization rate has already increased.

In summary, Mar-May supply-demand structure has improved with more decrease expected in total inventory. MEG spot availability has been gradually tightened. Coupled with the strength in crude oil, MEG market could still find supports. However, the upward room might be limited as port inventory remaining high. Eyes could also rest on the change in polyester polymerization rate