How MEG Supply Shocks Are Reshaping Global Trade
Tighter MEG supply and shifting trade flows are accelerating structural change across Asia’s EO and derivatives markets.
China’s MEG market entered the second half of 2026 under severe supply pressure. The closure of the Strait of Hormuz sharply reduced Middle East shipments, while limited crude feedstock availability forced several domestic producers in east and south China to lower run rates, and many coal-based assets entered maintenance. As inventories fell, prices surged and futures spreads tightened, exposing structural vulnerabilities across the value chain.
In this insight paper, Argus EO and Derivatives experts explore how the supply shock has redefined MEG trade patterns, the role of coal-based production in cushioning early losses, and what continued supply tightness could mean for downstream EO and polyester markets.
Download the paper to:
- Understand how the Strait of Hormuz disruption has affected MEG pricing and supply availability in China.
- Explore how coal-based MEG producers responded to import shortfalls and rising feedstock costs.
- Assess how new trade flows between China, South Korea and India are reshaping regional market balance.
- Examine why MEG fundamentals are likely to remain tight through year-end and what that means for EO derivatives.
This paper has been created using insight from Argus specialists drawing on independent data and analysis from Argus EO and Derivatives. Our service delivers key regional prices, weekly analysis and industry news across the global EO value chain, helping subscribers understand the factors influencing market conditions.