MEG price moves northwards in Indian markets on shortage – 8 May 2014

Stocks of MEG have been dwindling in the major chemical markets in India due to producers in the country not releasing fresh supplies. Shortage of the chemical in the country's markets has resulted in the price going up to around Rs 72 a kg (exclusive of taxes) from around Rs 69 a kg (exclusive of taxes).  In India, MEG is produced predominantly by Reliance Industries Limited (RIL) and Indian Oil Corporation Limited (IOCL). Interestingly, some market participants attributed RIL not releasing the chemical to captive consumption for PET production. As  a matter of fact, demand for the PET material will rise, with the summer season setting in. 
 

Moreover, availability of imported MEG is also less in Indian markets due to high import booking price, as some traders said.

 

MEG price is also expected to rise further up in the coming days in view of the tight supply situation.