The demand for MEG is strong to moderate across major markets in India. Despite considerable manufacturing capacity for MEG in India, the domestic market at present is dominated by imports as most manufacturers captively consume the chemical or are under planned maintenance.
According to sources, there is limited availability of Reliance Industries Limited (RIL) stock in the market as the company is captively using the chemical at its polyester manufacturing complex. Also, as RIL is significantly exporting the chemical overseas, there is limited stock position for RIL manufactured MEG in domestic market.
Indian Oil Corporation Limited (IOCL), which holds good market share for MEG in North India, is expected to go for planned turnaround around mid August for a period of 15 days. This will lead to weak stock position for IOCL manufactured MEG in North region, especially as demand is strong in the region.
A Delhi based trader informed, "The demand for MEG is particularly strong from the resin and argochemical industry, as the demand from the PET manufacturing industry is slowing down".
In line with domestic turnarounds, international turnaround for MEG manufacturing facility in Saudia Arabia's Jubail United Petrochemicals Company (JUPC) is expected to last 90 days, according to a company source last week.
Indianpetrochem gathers from conversation with various traders that, there is weak expectation of the price to MEG to gain significant momentum as, in a similar domestic short supply situation in the past, import sufficiently plugged the demand -supply gap, thus avoiding any major price escalation. Also, the booking price of MEG hasn't moved considerably in the past few weeks, thereby, avoiding strong indicators of a price rise in the future.
At present the bulk price of MEG is around Rs. 77-78 per kg Ex-Mumbai (exclusive of all taxes).
(This article was published on the website on July 22, 2014)
According to sources, there is limited availability of Reliance Industries Limited (RIL) stock in the market as the company is captively using the chemical at its polyester manufacturing complex. Also, as RIL is significantly exporting the chemical overseas, there is limited stock position for RIL manufactured MEG in domestic market.
Indian Oil Corporation Limited (IOCL), which holds good market share for MEG in North India, is expected to go for planned turnaround around mid August for a period of 15 days. This will lead to weak stock position for IOCL manufactured MEG in North region, especially as demand is strong in the region.
A Delhi based trader informed, "The demand for MEG is particularly strong from the resin and argochemical industry, as the demand from the PET manufacturing industry is slowing down".
In line with domestic turnarounds, international turnaround for MEG manufacturing facility in Saudia Arabia's Jubail United Petrochemicals Company (JUPC) is expected to last 90 days, according to a company source last week.
Indianpetrochem gathers from conversation with various traders that, there is weak expectation of the price to MEG to gain significant momentum as, in a similar domestic short supply situation in the past, import sufficiently plugged the demand -supply gap, thus avoiding any major price escalation. Also, the booking price of MEG hasn't moved considerably in the past few weeks, thereby, avoiding strong indicators of a price rise in the future.
At present the bulk price of MEG is around Rs. 77-78 per kg Ex-Mumbai (exclusive of all taxes).
(This article was published on the website on July 22, 2014)
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