Sep 04, 2023
With the significant increase in imported cargoes, tank capacity in some terminals has become tight, with pressure being especially apparent at Changjiang International, Zhangjiagang and PowerShell Petrochemical, Taicang. Since 2020, MEG imports have continued to decline, and some terminals have adjusted tank capacity, with some MEG tanks being switched to methanol, palm oil and other products, resulting in a noticeable decrease in MEG storage capacity. Taking Zhangjiagang as an example, current MEG tank capacity is only around 70% of the level in the same period of 2019. As of this Monday, tank usage at Zhangjiagang Changjiang International was close to saturation. Additionally, Yizheng still has some spare capacity, but cargo owners currently have weak intention to switch ports. Taicang PowerShell Petrochemical faces a similar situation. Previously, due to tight methanol storage tanks, the terminal appropriately adjusted some capacity to methanol products, and current MEG tank capacity is only around 20,000-30,000 tons. From late this month, with the gradual arrival of deep-sea contract cargoes and some domestic cargoes, congestion pressure will gradually become apparent.