there will be a gradual increase in the supply of MEG from overseas sources

Starting from May, there will be a gradual increase in the supply of MEG from overseas sources. Based on the current imports this month, it is expected that the import volume will recover to around 520,000-530,000 tons. The main contributing factor to this increase in imported MEG is the influx of US cargo. Since the end of March, there has been a significant increase in local supply following the successful restart of US Nan Ya #2. Since April, these supplies have been actively shipped to China, arriving without any issues by mid-May. Looking ahead, it is expected that the overseas supply will continue to increase, particularly in terms of US, Iranian, and some short-sea cargo.

In the United States, the current price of ethane is comparatively lower than last year, approximately one-third of its previous value. Consequently, the chemical plants in the region can benefit from a significant cost advantage. Presently, the average operating rate of MEG plants in the local area rests at around 90%. The supply within the North American market is abundant, and the market outlook suggests that local prices will continue to decrease throughout the year. Projections indicate that the amount of US cargo arriving in China can be expected to remain high from June until August.