MEG recovery will tighten supply through 2016

The market for monoethylene glycol (MEG) is closing a disappointing year on a quiet note, but analysts expect demand to recover in 2013 and to even outpace supply through 2016. “Demand has been weaker than expected all year,” says Tison Keel, ethylene glycol, ethylene oxide, and derivatives analyst at IHS Chemical. “We did not see the usual postholiday demand kicks after Chinese New Year [in late January] or the Golden Week holidays [in October], nor did the market experience the usual, strong autumn demand from apparel.” Analysts and...

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