February PTMEG export hits historic high

Exports of PTMEG hit new high in Feb, 2022, up by 224% on the year and 12.2% on the month respectively to 6,710 tons, when demand recovered but supply was inadequate outside China. The export unit price was averaged at $6.267/kg. Exports of PTMEG kept increasing since Q4 2021 and gradually exceeded imports. The net export approached 4,497 tons in Feb 2022.

Soaring exports were mainly due to the following 2 reasons: firstly, there was no new capacity abroad and some capacity was eliminated in 2021. As a result, supply of PTMEG was short outside China. Secondly, the cost of PTMEG surged outside China after the Lunar New Year’s holiday with hiking prices of crude oil and natural gas, especially after Mar. Price of PTMEG continued spiking outside China, while price of China-made PTMEG, mainly under coal chemicals based production route, decreased due to stable cost but weakening demand near the Lunar New Year’s holiday. Therefore, export of China-made PTMEG enjoyed apparent price advantage. 

Export destinations of PTMEG also changed greatly. Exports to Asia totaled 3,225 tons, up 163% y-o-y, and the proportion of Asia decreased to 48%. Exports to Europe approached 2,400 tons, up by around 14 times over the same period of last year, and the proportion of Europe was at 36%, up by 24 percentage points year on year. The proportion of America dropped to 16% but exports to America still rose by 59% on annual basis.

Average export price of PTMEG sustained at above $6.2-6.6/kg since Q4 2021, which was stimulated by changing export structure. Exports were not only PTMEG 1800 since Q4 2021 and those of PTMEG 2000 and PTMEG 1000 with higher unit price also apparently grew.

Exports of PTMEG are expected to remain high in Q2 2022 as the price of PTMEG outside China is estimated to sustain high in short run amid high cost and domestic PTMEG plants will pay more attention to export after local capacity expanded in China.