China's MEG imports & exports in 2024

Imports

In 2024, China's MEG imports totaled 6.554 million mt, a decrease of 594kt (approximately 8.3%) compared to 2023. The top import sources were Saudi Arabia, Canada, and the United States, with Oman, Iran, and the UAE collectively ranking fourth. Among China's MEG imports, deep-sea cargoes accounted for about 93%, while nearby supply remained low due to overall profitability constraints.

China's MEG imports by origin in 2023-2024

For import sources:

Saudi Arabia remained the largest supplier, with imports decreasing by about 6% compared to 2023. Early in the year, the tense Red Sea situation led to reduced shipping capacity and delays, compressing Saudi supply to low levels in Q1. From mid-year onward, cash flow losses for MEG triggered production cuts and shutdowns at some high-cost Saudi plants, such as Yanpet 1 and JUPC 2, further tightening supply.

Maintenance/shutdown of several MEG units in Saudi Arabia

Imports from Canada saw drop by approximately 14% year-on-year, with monthly supply averaging around 80kt. Shipments to China were evenly distributed throughout the year, except for a dip in October due to maintenance at MEGlobal and Shell facilities in September, which significantly reduced shipments.

China's MEG imports from Canada in 2024

Maintenance/shutdown of several MEG units in Canada

The United States experienced a similar year-on-year drop of about 14%, with monthly supply averaging slightly below 70kt. Late 2023 congestion at the Panama Canal raised shipping costs, closing the US-China arbitrage window and suppressing Q1 arrivals. Additionally, North American MEG plants faced operational instability due to extreme weather events such as cold snaps and hurricanes, leading to multiple short-term shutdowns and significant production losses. The slow restart of the 828kt/year Nan Ya #2 unit, which was offline from December 2023 until late June 2024, contributed to tight supply in the US market during the year.

China's MEG imports from the United States in 2024

Imports from Iran, Oman, and the UAE collectively saw a 29% drop year-on-year. The 450kt/year Pars Glycol (BCCO) unit in Iran shut down in late March due to profitability issues and only resumed operations in mid-to-late October, resulting in significant production losses. Other plants such as Marun, Farsa, and Morvarid operated steadily. Additionally, from August onward, some Iranian cargoes were reclassified as Saudi supplies, further reducing reported imports from these regions.

In nearby regions, MEG supply remained low, with slight increases in the second half of the year:

South Korea: MEG production from naphtha faced severe cash flow losses, and previously idle plants showed no signs of resuming operations. A few reduced-capacity plants increased operating rates slightly in the second half. Monthly shipments to China averaged about 18kt, mainly supplied to northeastern regions.

Taiwan, China: No shipments were made to Chinese mainland China in the first half of the year. From July onward, MEG supply partially resumed as prices improved, but volumes remained limited.

Malaysia: PRefChem' 750kt/year unit restarted in mid-August after earlier operational instability. From September onward, some cargoes were shipped to China.

Exports

In 2024, MEG exports totaled 167kt, an increase of 65.6kt compared to 2023. Key export destinations included Russia, Japan, Australia, and Bangladesh.

China's MEG exports by destination in 2024