MOSCOW (MRC) -- US monoethylene glycol (MEG) exports in the first four months of 2021 were nearly 21.5% lower than the year-ago period, reflecting sharply lower export volume availability in the aftermath of widespread production shutdowns amid a deep freeze that hit the US Gulf Coast in February, according to S&P Global with reference to the latest US International Trade Commission data, released June 9.
The US shipped out 585,485 mt of MEG in the January-April period of 2021, down from 745,467 mt in the year-ago period.
More than 4 million mt/year of total 4.65 million mt/year of US MEG capacity shut down when sustained subfreezing temperatures hit the US Gulf Coast and much of the US in mid-February.
Shutdowns lasted for weeks as producers awaited upstream ethylene cracker restarts, which were slow because producers had to run material through miles of exposed pipes to find and fix cracks and leaks caused by the extreme cold.
China, the world's largest MEG consumer for its polyester industry, was the top recipient of US MEG outflows in the January-April period, having received 143,391 mt, or 24.5% of the total.
Mexico was second at 128,028 mt, or 21.8% of the total, followed by Turkey at 107,491 mt, or 18.3% of the total.
Belgium was the fourth-highest recipient at 72,654 mt, or 12% of the total. But European destinations could decline in the coming months as the European Union aims to impose provisional antidumping duties on US- and Saudi Arabia-origin MEG imports in June, market sources said.
MEG is used to make antifreeze and also is a feedstock for polyethylene terephthalate, which is used to make plastic bottles and polyester fiber.
As MRC wrote previousky, Lotte Chemical USA, a joint venture (40:60) of the Malaysian company Lotte Chemical Titan and its parent company Lotte Chemical Corporation, has declared force majeure (FM) on monoethylene glycol (MEG) and other products produced at its Louisiana complex after an electrical equipment failure, according to a customer letter seen by S&P Global on May 27. The letter said the company prepared for heavy storms that hit Lake Charles and other areas along the Texas and Louisiana coasts the week of May 17, but on May 21, "critical electrical equipment" failed and prompted an unexpected plant shutdown. Thus, the FM was declared on May 22.
According to MRC's ScanPlast report, Russia's estimated PET consumption grew to 263,660 tonnes in the first four months in 2021, up by 13% year of year. Bottle grade PET accounted for 78.3% of the increase in consumption due to the virtual absence of exports and higher imports.
MRC