MEG prices are likely to track the move in costs

MEG

Supply and demand: slow startups of new units; broadly balanced in Oct; clear inventory buildups in Nov-Dec

Supply: China domestic supply recovers slightly. Operating rate of all MEG units is around 60% and of coal-based units around 41%

Demand: polyester product inventories decrease slightly; end-use demand remains weak and the dual controls continue. The increase in MEG demand would be limited in short term.

Outlook: MEG prices are likely to track the move in costs; long-term supply will increase amid high prices.