Chinese PTMEG Has Bottomed
PUdaily, Shanghai-According to PUdaily, the newly added PTMEG facilities with capacity of 46 kt/year at Xinjiang TunHe and 50 kt/year at Xinjiang MKMO have lifted China’s total PTMEG capacity to 675 kt/year in 2016. Domestic PTMEG market keeps falling down dragged by overcapacity and fierce competitions among PTMEG suppliers from January to July and then stops downtrend and turns stable in the middle of August supported by the unexpected facility shutdown at MCC Advanced Polymers (Ningbo) and safety accident at Sinopec Great. At the end of August, the PTMEG price starts to rebound resulted from the supply shortage, good demand in spandex and TPU industry as well as the good performance of BDO.
From the view of overall market, domestic PTMEG market import keeps decreasing on the confluence of oversupply in the domestic market. In 2016, China PTMEG import will reach to 52,418 tons, down by 33.63% compared to 78,983 tons of the same period of last year. The imported PTMEG in China mainly comes from Taiwan, South Korea, Japan, America, Germany and other regions. Among these regions, Taiwan has been the biggest source, down slightly compared to previous years.
In 2016, China PTMEG export shows apparent increase. China PTMEG export will reach to 11,965 tons, up by 34.40% compared to 4,695 tons of the same period of last year. In 2016, the export of PTMEG to Vietnam ranks the first, followed by Thailand and South Korea.
Looking at market outlook in 2017, as for demand, spandex and TPU market performs well with stable growth in recent years, which will lead to increasing demand for PTMEG. As for export, confronted with the oversupply in the domestic market, PTMEG producers will continue to making efforts to find their buyers in overseas market. It is predicted that the PTMEG export volume will continue to be on the rise in 2017.