China Domestic MEG Production Reaches New Record Highs

In November, China domestic MEG production reached a record high of 1.73 million mt. Recently, Fujian Refining & Petrochemical's 400kt/year and Yuneng CHemical's 400kt/year plants restarted as planned. With stable operation of these units, the overall operating rate of MEG units in Chinese mainland will reach around 74%, while the operating rate for syngas-based units hovers around 73%. Currently, operating rates across all sectors are at historical highs.

With the restart of Zhenhai Refining & Chemical in January, and without any production cuts or turnarounds by SHCCIG Yulin Chemical, the overall operating rate is expected to remain high at 73-74%. Future attention should focus on the operational status of several key plants, including ZRCC, Sanjiang, and Yulin Chemical.

At this rate, China domestic MEG production is projected to reach 1.8 million tons or slightly higher this month, setting a new record. Furthermore, total MEG production for 2024 is estimated to be around 19.4 million tons, representing a year-on-year increase of over 15%.

Looking ahead to January, assuming no unexpected shutdowns, domestic MEG production is also expected to remain high, near 1.8 million tons.