Oct 08, 2023
When excluding the impact of delayed arrivals, it is projected that import contraction in September will be modest. For instance, MEGlobal's 750kt/year unit has resumed normal operations, and the Nan Ya 1# unit in the U.S. is expected to restart in early September. This has led to a partial recovery in local supply from July levels. Furthermore, there remains a reasonable level of enthusiasm for exporting goods, as ongoing discussions are centered around tendered goods from the previous week.
Regarding short-sea supply, the availability of South Korean goods is notably abundant. Both LG Chem and Hanwha have plans to export MEG in the near term. A recent tender for 25,000 tons of South Korean goods was concluded in late August, with a projected arrival time in mid-to-late September. Additionally, the restart of the Malaysian PRefChem 750kt/year unit is scheduled for the end of the current month. Continued attention will be directed towards the unit's operation, with the potential for it to become a source of exports to China if stable. As things stand, a preliminary assessment suggests that September imports will hover around 650,000 tons. Looking ahead to the fourth quarter, the impending reduction in supply from Saudi Arabia could result in another contraction of MEG import volumes.