Polyester filament price to ascend in short run with surging MEG

Recently, the whole polyester industry chain focuses on MEG market. Average price of spot MEG has kept refreshing high in Dec. By Dec 18, the average price of spot MEG was at 5,670yuan/mt, hitting historic high.

Surging MEG price was mainly attributed to low stocks at major ports. By last Thursday, the stocks of MEG at major ports in East China were only 412kt, the lowest level in history. The arrivals of MEG may be around 195kt this week, but the warehousing process was slow. Coupled with the weather issue, stocks of MEG at ports are hard to rise effectively. Spot supply of MEG remains tight, and the periodical tightness pushes up price.