Since the past few months, the supply of indigenously manufactured MEG has been limited due to domestic plant turnarounds and captive consumption. As such, the Indian market has become significantly reliant on imports, causing bulk prices to gradually rise from levels of Rs. 72 per kg to current price of Rs. 76 per kg Ex- Mumbai, over the last month.
Within the past two weeks, Reliance Industries Limited (RIL) and Indian Oil Corporation Limited (IOCL) MEG plants have been shut due to ongoing maintenance work. During the turnarounds, both companies did an upward price revision of MEG on 1st July, 2014, whereby RIL increased MEG price by Rs. 3 per kg to Rs. 67.8 per kg while IOCL increased its ex-works price from Rs. 70 per kg to Rs. 73 per kg.
Indianpetrochem gathers from traders that there is absolutely no availability of RIL stocks in the market, while limited IOCL stocks are available with some traders in Ahmedabad market. On this note, an RIL official clarified and informed the website that most of its MEG stocks are being captively consumed at its Polyester manufacturing complex, thereby, the company isn't able to release any stocks in the markets.
Comprehending the situation on imports, a prominent importer reported , " The booking price of MEG hasn't moved significantly, its been in range of 1,000-1,008 CFR South East Asia. However, if the domestic short supply situations persists, then there are chances that the bulk prices will escalate within the short to medium term."
Its gathered from Indianpetrochem market survey, that there is strong demand for MEG from the paint and polyester industry at present. As the demand parameters for the chemical remain strong, the price of the MEG in India is expected to move on account of supply constraints, most likely caused by domestic turnarounds.
Within the past two weeks, Reliance Industries Limited (RIL) and Indian Oil Corporation Limited (IOCL) MEG plants have been shut due to ongoing maintenance work. During the turnarounds, both companies did an upward price revision of MEG on 1st July, 2014, whereby RIL increased MEG price by Rs. 3 per kg to Rs. 67.8 per kg while IOCL increased its ex-works price from Rs. 70 per kg to Rs. 73 per kg.
Indianpetrochem gathers from traders that there is absolutely no availability of RIL stocks in the market, while limited IOCL stocks are available with some traders in Ahmedabad market. On this note, an RIL official clarified and informed the website that most of its MEG stocks are being captively consumed at its Polyester manufacturing complex, thereby, the company isn't able to release any stocks in the markets.
Comprehending the situation on imports, a prominent importer reported , " The booking price of MEG hasn't moved significantly, its been in range of 1,000-1,008 CFR South East Asia. However, if the domestic short supply situations persists, then there are chances that the bulk prices will escalate within the short to medium term."
Its gathered from Indianpetrochem market survey, that there is strong demand for MEG from the paint and polyester industry at present. As the demand parameters for the chemical remain strong, the price of the MEG in India is expected to move on account of supply constraints, most likely caused by domestic turnarounds.
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