"Pricing is always determined by market forces. In terms of value creation, MEG prices are a bargain today. However, MEG has been one of the most attractive ethylene derivatives in the last five years,” says a senior official of a major MEG producer.
Kamlesh Parwani, Commercial Director (METIP) at MEGlobal International FZE in an exclusive chat with fibre2fashion revealed this and more on the global market for Mono Ethylene Glycol (MEG) and Ethylene Glycol (EG).
He adds, “MEG is a global commodity that creates value in several downstream industries. As these downstream markets in PET and polyester grow, we will also see demand for MEG grow.”
Delving in to the reasons for China being the biggest market for MEG, he informs, “The two largest markets for MEG are polyester and PET bottle chips. China dominates the polyester industry and therefore MEG demand is the highest in China.”
As an afterthought he adds, “China will also remain the dominant force in global polyester industry for next 10 years.”
Sharing the journey and outlook for MEGlobal, Kamlesh says, “We at MEGlobal recently celebrated our 10th anniversary. The journey so far have been more than satisfying for both the parent companies as measured by our record on safety, earnings and growth.
"Now it is time for the next phase of growth. It all started when Dow embarked on the asset light strategy and moved towards more specialty products and PIC was exploring to strengthen their global footprint.
"Today, both have immensely benefited from MEGlobal's enhanced market leadership. Going forward, both parents are extremely supportive of MEGlobal's strategy and remain confident in the company's approach to the market.”
He is of the opinion that the global growth of polyester industry is hovering around 5% annually with China, India, South America, Turkey and Middle East observing higher growth rates, but did not opine on the direction MEG prices would take in the near future. (AR)
