Limited supplies of domestically manufactured Mono Ethylene Glycol (MEG) in the Indian market against imported MEG gives mixed impression about the present supply situation for MEG in the country. In this review the website enlists the reason for current domestic short supply, while the demand gains momentum from end user industries.
In India, there are three domestic manufacturers for MEG, mainly Reliance Industries Limited (RIL), India Glycols Limited (IGL) and Indian Oil Corporation Limited (IOCL), out of which RIL has the largest market share.
However, there has been limited availability of RIL manufactured stocks in the market for the past month or so.
The website gathers from various market sources, the reason for negligible RIL manufactured MEG stocks in the market is because RIL is captively consuming MEG at its Jamnagar refining facility, polyester complex, for producing POY and PSF.
It is also understood that IOCL's MEG production facility is shutdown due to maintenance purposes, which is expected to restart by next month. However, there are some industry officials who say that the plant has already resumed operations, the website was unable to get a comment from the company on this account. But, some participants have gone ahead and confirmed that buyers under contractual agreement with the company are receiving MEG supplies, hence IOCL stock' s also arent available in the open market.
The website spoke to an official from IGL, which has installed capacity of 1.5 lakh annually, who informed that the demand for MEG has been gaining considerable moment since the past few weeks on account of rising PET and PEG demand.
The official went on to even add that monthly 70, 000-80,000 metric tonne of MEG reaches Indian port and the current supply shortage situation amongst some industry participants is only limited to traders who are stockist of domestic products only. Indianpetrochem concurs with this trend and gathers that import shipments are coming into the county, in the last week of May 11,000 metric tonne of new MEG shipments has reached or expected to reach Indian shores.
The bulk prices for MEG were more or less stable at levels of Rs. 68-70 per kg since last month. However, in the 2nd week of April, the bulk price escalated to Rs. 75-76 per kg, exclusive of all taxes. Most market participant pinpoint the price hike to short supply on some import shipment delay. Currently, the bulk price has stabilized at around Rs. 71-72 per kg, exclusive of all taxes.
The websites spoke to some Indian PET manufacturing companies, who confirmed that the PET demand is gaining considerable weight in the Indian market on account of approaching summers.
Overall, given the import dependence of MEG in the Indian markets it will be interesting to see how the prices move due to any shipment delay.
By Ntasha Berry (ntasha.berry@indianpetro.com) and Mirza Zahid (mirza.zahid@indianpetrochem.com)
(This article was published on the website on April 29, 2014)
In India, there are three domestic manufacturers for MEG, mainly Reliance Industries Limited (RIL), India Glycols Limited (IGL) and Indian Oil Corporation Limited (IOCL), out of which RIL has the largest market share.
However, there has been limited availability of RIL manufactured stocks in the market for the past month or so.
The website gathers from various market sources, the reason for negligible RIL manufactured MEG stocks in the market is because RIL is captively consuming MEG at its Jamnagar refining facility, polyester complex, for producing POY and PSF.
It is also understood that IOCL's MEG production facility is shutdown due to maintenance purposes, which is expected to restart by next month. However, there are some industry officials who say that the plant has already resumed operations, the website was unable to get a comment from the company on this account. But, some participants have gone ahead and confirmed that buyers under contractual agreement with the company are receiving MEG supplies, hence IOCL stock' s also arent available in the open market.
The website spoke to an official from IGL, which has installed capacity of 1.5 lakh annually, who informed that the demand for MEG has been gaining considerable moment since the past few weeks on account of rising PET and PEG demand.
The official went on to even add that monthly 70, 000-80,000 metric tonne of MEG reaches Indian port and the current supply shortage situation amongst some industry participants is only limited to traders who are stockist of domestic products only. Indianpetrochem concurs with this trend and gathers that import shipments are coming into the county, in the last week of May 11,000 metric tonne of new MEG shipments has reached or expected to reach Indian shores.
The bulk prices for MEG were more or less stable at levels of Rs. 68-70 per kg since last month. However, in the 2nd week of April, the bulk price escalated to Rs. 75-76 per kg, exclusive of all taxes. Most market participant pinpoint the price hike to short supply on some import shipment delay. Currently, the bulk price has stabilized at around Rs. 71-72 per kg, exclusive of all taxes.
The websites spoke to some Indian PET manufacturing companies, who confirmed that the PET demand is gaining considerable weight in the Indian market on account of approaching summers.
Overall, given the import dependence of MEG in the Indian markets it will be interesting to see how the prices move due to any shipment delay.
By Ntasha Berry (ntasha.berry@indianpetro.com) and Mirza Zahid (mirza.zahid@indianpetrochem.com)
(This article was published on the website on April 29, 2014)
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