More coal-to-MEG units will be affected by coal supply tightness

Last week, Xinjiang Tianye lowered operating rate of its 50+600kta syngas-based MEG plants due to thermal coal shortage, and may further lower the operating rate. The heating season starting from October in northern China will intensify the coal supply tightness. More coal-to-MEG units will be affected by coal supply tightness.

Meanwhile, startups of new capacities are slower than expected. The operation of Gulei Petrochemical is unstable; Guangxi Huayi has been closed without clear restart timing; Xinjiang Guanghui and Anhui Haoyuan will test at the end of September and the actual output would be limited within September. The supply-demand structure would be broadly balanced in September.