European spot MEG prices lack momentum

Spanish Market: Petrochemicals
24/09/26

European monoethylene glycol (MEG) prices edged lower in September, despite global values rising because of geopolitical tensions in the Middle East.

Increased domestic production, steady contractual imports and subdued demand has limited European price gains. Argus assessed bulk cargoes at €600-630/t cif ARA on 23 September, down by €15/t at the midpoint compared with 12 August. Truckload values were €690-720/t fca ARA, compared with €700-720/t as of 12 August.

This contrasts with some market expectations of price increases, given tighter global supply and higher Asian prices. Spot prices for MEG in China, the world's largest import market, were $750-780/t cfr on 23 September, below last week's peak but around $115/t above levels of early August.

Arbitrage for European spot imports from the US, the continent's largest MEG supplier, remained unworkable in September as US prices climbed. European cif values rose marginally on a sale for September delivery, before retreating. Yet, European imports are broadly steady, mostly arriving from the US and Saudi Arabia under long-term contracts.

Higher operating rates at some domestic facilities since August ensured sufficient supply. Several European producers increased ethylene glycols output, responding to weak spot demand for upstream ethylene and relatively active demand for bulk MEG cargoes for August and September delivery.

Some MEG consumers relied more heavily on spot purchases than in 2025, creating additional sales opportunities in the third quarter, particularly among antifreeze buyers securing supplies ahead of the winter.

Some customers may favour European supply over imports to mitigate potential disruptions during the US hurricane season, although no significant weather-related disruptions have occurred this year.

European producers remained competitive despite rising naphtha feedstock costs weighing on margins in September. It remains to be seen if margin pressure will prompt ethylene glycols output cuts.

Regional ethylene glycols production is likely to drop in September-October because of planned maintenance at a northwest European producer, lasting six to eight weeks and potentially affecting availability into mid-November.

The effect of the shutdown could be partially offset by scheduled turnarounds at downstream facilities, curbing demand for feedstock MEG in October-November. Lithuanian polyethylene terephthalate (PET) resin producer Neo Group will shut one of three production lines in Klaipeda, with combined capacity of around 500,000 t/yr, from late September for around two months. Indorama Ventures will shut its 230,000 t/yr PET resin facility in Wloclawek, Poland, in early November for one month.

These outages are likely to take around 160,000 t/yr and 390,000 t/yr of PET capacity offline in October and November, implying lost MEG demand of 14,000-15,000t over two months at full capacity. The actual effect on feedstock demand is likely to be lower, as most PET plants in Europe are operating below nameplate capacity because of weak demand and ample supply.

Demand from another key downstream sector, antifreeze and coolants, is healthy and broadly in line with expectations ahead of the peak fourth-quarter season. Some buyers may opt to stay out of the market in the coming weeks after securing early requirements, supporting August demand, during the usual seasonal lull.

European spot prices must realign with global levels to continue attracting imports and support current domestic operating rates. But if regional demand remains subdued, price support is likely to be limited.

By Liana Minihan

MEG cif ARA T2 differential to MEG cfr China $/t

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

17/09/26

US gasoline, aromatics tighten on diesel focus

Houston, 17 September (Argus) — US oil refineries are focusing the highest run rates in 22 years on diesel production as two wars increase overseas demand, a move that has tightened domestic supplies of gasoline and aromatic blending components. Prices for aromatics blended into gasoline stand at multi-year highs, with the ethylbenzene (EB) assessment reaching levels reaching a record-high of 503¢/USG on 8 September . EB feedstock benzene and toluene and xylenes prices all reached four-year highs in September. Benzene peaked at 547¢/USG on 15 September and toluene and xylenes both peaked at 564¢/USG on 16 September, Argus data show. The rise in aromatics prices has been driven by increased blending of low-octane, light-naphtha into US gasoline supplies, as blending naphtha boosts demand for high-octane aromatic blendstocks to raise gasoline's octane rating to retail specifications. Naphtha blending demand is rising because of high gasoline prices that have increased gasoline's premium to naphtha, known as the naphtha-gasoline spread, into September, bucking seasonal trends. The spread normally narrows after peak high-octane blending demand in June ( see chart ). But the naphtha-gasoline spread widened to 157¢/USG in September, up by 22¢/USG from June, Argus data show. The unseasonably wide naphtha-gasoline spread can be traced to higher gasoline prices, rather than a particularly weak naphtha market that caused supply builds in prior years. The naphtha-gasoline spread stands above levels seen during the fall of 2022 and 2023, when falling naphtha exports boosted US supplies. Naphtha exports in 2022 and 2023 were 258,000 b/d and 281,000 b/d, respectively, while naphtha exports so far this year have averaged 402,000 b/d. Also contributing to this year's unseasonably high prices for aromatics blendstocks toluene, xylenes and EB are plant turnarounds at two aromatics producers in September and October that have tightened supplies further. The US has also received fewer aromatics imports than in the past four years because of feedstock supply issues in Asia-Pacific that have capped refinery run rates in the region. That has forced Asian petrochemical producers to prioritize supplying their regional trading partners, even with open arbitrage opportunities to the US in spite of import tariffs. Focus on diesel Aromatics demand for gasoline blending has also been supported by US refiners' decision to prioritize diesel production, tightening supplies of gasoline and blending components. With the harvest season boosting domestic diesel demand and wars in Ukraine and the Mideast Gulf creating supply constraints that have boosted export demand, the Nymex ultra-low sulfur diesel (ULSD) contract settled at a record high this week. Refiners' focus on diesel at the expense of gasoline has outweighed the seasonal shift to winter-grade gasoline, which this year was allowed to begin on 1 September, two weeks earlier than usual. The shift to winter specifications permits lower cost, higher-vapor pressure blendstocks like butane to enter the gasoline blend pool, which typically reduces demand for aromatic blendstocks. Gasoline prices also remain unseasonably high. Conventional 87-grade gasoline prices stand $1.68/USG higher than year-earlier levels and $0.97/USG higher than the five-year rolling average for the month of September, Argus data show. Meanwhile, premium 93-grade gasoline prices, which include additional high-octane blendstocks, stand $1.83/USG higher than a year earlier and $0.98/USG higher than the five-year rolling average for September. Higher gasoline prices stem from the overseas conflicts that have reduced inventories and increased global crude prices. Gasoline inventories totaled 207.7mn bl and motor gasoline blending components totaled 193.1mn bl in the week ended 11 September, down from a year earlier by 9.9mn bl and 9.6mn bl, respectively, according to US Energy Information Administration (EIA) data. Inventories of gasoline and blendstocks are poised to tighten further, pushing prices higher, as refiners prioritizing diesel production. Meanwhile, crude prices have surged since the start of the US-Iran war, with WTI Houston crude closing at $107.78/bl on 15 September and crude prices peaking this year on 6 April at $119.66/bl, Argus data show. Refinery rates at 22-year highs US refiners are running all out to capture record high margins, particularly for diesel. Refinery operating rates have averaged 97.3pc so far in September, the highest average monthly rate since June 2004 and well above the roughly 90-95pc range of recent years, EIA data show. As US refinery run rates increase, so has diesel output. ULSD production last week was up by 7.7pc from a year earlier at 5.04mn b/d, according to EIA data. In August, ULSD production rose to 5.01mn b/d, the highest output since December 2025. US diesel production has climbed since the beginning of the Mideast Gulf war to help meet European demand for fuels typically sourced from the Middle East and Russia. US Gulf coast ULSD exports to Europe climbed to 590,000 b/d in the week ended 11 September, up by 490,000 b/d from the prior week, according to Vortexa vessel-tracking data, and the highest exports to the continent in Vortexa records dating to January 2016. Record high US diesel exports have contributed to a draw down in inventories, which totaled 107.9mn bl in the week ended 11 September, down by 16.8mn bl from the year prior. US refiners in September usually build diesel stocks ahead of seasonal turnarounds, when they shift away from maximum diesel yields. If diesel inventories remain low in October, gasoline and aromatic blendstock prices could gain further support. With tight diesel and gasoline inventories and aromatic chemical prices near multi-year highs, the market has little room for disruption. Any major refinery outage or major Gulf coast storm could quickly drive fuel and aromatic petrochemical prices higher. By Jake Caldwell, Blake Del Papa and Hunter Fite Naphtha - Conventional 87 grade gasoline spread ¢/USG Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Mercado considera virada de preços no metanol

16/09/26

Mercado considera virada de preços no metanol

Sao Paulo, 16 September (Argus) — O preço do metanol no Brasil, que levou em setembro as cotações do produto negociado no mercado à vista aos menores níveis desde o início da guerra entre Estados Unidos-Irã, agora se aproxima de uma recuperação. O preço médio do produto entrepostado no porto de Paranaguá (PR) recuou 27pc, para R$2.625/t, entre 8 de maio – quando atingiu a máxima desde o início da série histórica da Argus, em 20 de junho de 2025 – e 11 de setembro. Participantes de mercado atribuem o comportamento de preços à baixa demanda por parte da indústria do biodiesel e ao consequente excesso de oferta de metanol nos portos brasileiros. Um cenário competitivo mais acirrado entre vendedores contribui para esse movimento. Compradores relatam atrasos na retirada de volumes de metanol que foram adquiridos para consumo no quarto bimestre do ano, gerando um excedente que reduziu a necessidade de aquisição para o quinto bimestre. Em alguns casos, os atrasos foram suficientes para cobrir as necessidades de consumo até a primeira quinzena de setembro. Alguns participantes de mercado também optaram por adiar as decisões de compra ou realizar aquisições mais frequentes e de volumes menores diante da tendência de baixa nos valores, com o objetivo de reduzir o preço médio. Usinas de biodiesel tendem a negociar as compras para o volume total esperado para o bimestre, recorrendo ao mercado à vista de forma pontual entre os bimestres. Desde agosto, vendedores estão aceitando reduzir preços de modo a gerar liquidez e liberar espaço em tanque, evitando arcar com custos adicionais de armazenamento. Os níveis de preços praticados no mercado brasileiro estão abaixo ou próximo do custo de aquisição, segundo distribuidores do metanol, sugerindo pouca disposição a continuar reduzindo valores. Disputa por produto volta ao radar Participantes de mercado estimam que um eventual ajuste para cima nos preços pode ocorrer com mais intensidade nas negociações para o suprimento de metanol à indústria do biodiesel no próximo bimestre. Alguns vendedores já especulam que cargas que viriam ao Brasil sejam redirecionadas a outras localidades com remuneração maior, à semelhança de movimentos observados nos meses iniciais da guerra no Oriente Médio . Ásia surge como principal alternativa para novos destinos. Por enquanto, não há registro de mudança de rotas para navios inicialmente direcionados ao Brasil. Os preços mais baixos registrados no porto de Paranaguá contrastam com altas no cenário internacional desde o fim de julho. São observados aumentos na Ásia, Europa e EUA. Na China, onde as elevações ocorrem de modo mais intenso, as altas alcançam quase 40pc entre 31 de julho-11 de setembro. No sudeste asiático, o avanço supera os 20pc, com valores que chegaram a $575/t em 11 de setembro, acima dos $515/t negociados em Paranaguá. Por Fernando Ladeira Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2026. Argus Media group . Todos os direitos reservados.

PET recycling key to emissions cuts: NAPCOR

15/09/26

PET recycling key to emissions cuts: NAPCOR

Houston, 15 September (Argus) — Expanding PET recycling rates and increasing recycled-content use could reduce lifecycle greenhouse gas emissions intensity from US PET beverage bottles by 57pc by 2050, the National Association for PET Container Resources (NAPCOR) said in a report today. Total annual emissions from the sector could fall by 42pc even as PET production volumes rise, NAPCOR said in a new decarbonization roadmap. The roadmap identifies a combination of higher recycling rates, greater recycled PET (rPET) use, designing lighter bottles, renewable energy adoption and manufacturing efficiencies as the main drivers of emissions reductions. Total industry emissions are projected to decline to about 1.9mn metric tonnes (t) of CO₂ equivalent by 2050 from roughly 3.3mn t in 2023, the report shows. Substantial reductions could occur well before 2050. Emissions intensity from producing 16.9oz PET water bottles could fall by about 44pc by 2035 from a 2023 baseline, while emissions from carbonated soft drink bottle production could fall by 35-43pc over the same period. Carbonated soda bottles are typically thicker than still water bottles due to pressure from carbonation. Lightweighting and renewable energy provide the largest emissions reductions, but stronger collection systems, higher recycling rates and increased recycled content remain important long-term contributors, the roadmap shows. "PET is the most circular polymer and one of the best materials for packaging, and it will get even better by reducing its carbon emissions," NAPCOR technical director Shankar Prabhushankar said. The roadmap assumes recycled-content levels in PET bottles could approach 100pc over the long term, while collection and recycling rates increase to about 60pc. Greater progress will require stronger collaboration across the value chain to improve recovery rates, Prabhushankar said. The US PET recycling rate is only about 30pc, far below rates in the upper 80pc to 90pc range in some western European and Asian countries. Greater collaboration among industry, regulators and policymakers is needed to improve collection rates and ensure reclaimers have access to consistent supplies of high-quality PET bales to support future investment in recycling capacity, Prabhushankar said. The study frames recycling as a manufacturing and supply-chain issue rather than solely a waste-management strategy. Capturing more PET bottles for recycling can increase domestic supplies of recycled feedstock, strengthen US manufacturing and improve supply-chain resilience, the report shows. "Environmental progress is achievable with economic growth," Prabhushankar said, adding that the study demonstrates PET demand can expand while reducing environmental impacts. The roadmap could provide a framework for extended producer responsibility (EPR) organizations and policymakers as they develop EPR programs with eco-modulated fee structures that vary based on packaging recyclability. The report's lifecycle assessment findings could help determine which packaging materials are incentivized under those systems, Prabhushankar said. The roadmap, developed by independent environmental consulting firm Eastern Research Group, evaluates four major US PET beverage bottle formats, including water and carbonated soft-drink bottles. The analysis builds on a peer-reviewed, ISO-compliant life-cycle assessment completed in 2023. By Dona Davis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

China's Goldwind produces RED III-compliant biomethanol

10/09/26

China's Goldwind produces RED III-compliant biomethanol

Shanghai, 10 September (Argus) — Chinese green methanol producer Goldwind Green Energy achieved a successful trial run at its 250,000 t/yr biomethanol unit in Xing'an League, Inner Mongolia, this week, producing biomethanol that meets the European Union's Renewable Energy Directive (RED III) sustainability requirements. The company held a ceremony at the project site on 10 September to mark the first shipment of 500t of biomethanol trial product from the facility. Goldwind will transport the cargo to Yingkou port in northeast China's Liaoning province before shipping it to South Korea. The batch carries a carbon intensity (CI) value of around 24.5g CO₂/MJ on an ex-factory basis, Goldwind told Argus . The 250,000 t/yr entrained-flow bed unit is Goldwind's first production line to enter operation and is the world's largest green methanol production facility to date, using wind-powered green hydrogen and corn straw from the surrounding agricultural region. The company aims to commence commercial operations in two weeks, following the trial run. The facility is part of Goldwind's broader green methanol project in Xing'an League. The company launched the project in 2024, and it will produce 500,000 t/yr of green methanol upon full completion. Goldwind and the Xing'an League Administrative Office signed further investment agreements in October 2025 for the second and third phases of the green methanol project, which will have a total capacity of 1.45mn t/yr of green methanol upon full completion. Goldwind has secured two long-term offtake agreements with major container shipowners, including a 500,000 t/yr supply agreement with Maersk and a 250,000 t/yr agreement with Hapag-Lloyd . Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

US rail volumes log strong growth in August: AAR

09/09/26

US rail volumes log strong growth in August: AAR

Houston, 9 September (Argus) — US rail carload volumes rose in August to the highest level in nearly eight years while weekly rail traffic rose by nearly 14pc from a year earlier, according to Association of American Railroads (AAR) data. AAR attributed the increases to resilient US consumer demand, higher US manufacturing activity, and rising diesel costs, which have made rail shipments more cost-effective compared with competing transport options such as trucks. Class I railroads shipped 533,545 carloads and intermodal units over the week ended 5 September, up by 14pc compared with the same week last year, AAR said Wednesday. Weekly non-intermodal traffic averaged more than 235,000 railcars in August, the most since October 2019 and the eighth straight year-over-year gain. Railcar growth was broad-based and stretched across 15 of the 20 carload categories that the AAR tracks. On a monthly basis, Class I railroads shipped nearly 300,000 intermodal containers and trailers per week in August, up by more than 4pc from a year earlier and besting the previous record set in June. Combined US carload and intermodal volume in August was the most in nearly eight years, AAR said without providing specifics. Metallic ore shipments posted the biggest percentage gains in August, rising by 19pc from a year earlier, followed by a 16pc increase for coke, a nearly 16pc gain for lumber and wood products and a 9.1pc increase for petroleum products. Chemicals shipments logged the seventh increase in eight months and are on a record annual pace, the AAR said, driven in part to lower US natural gas prices that have incentivized output at petrochemical and other industrial plants. Shipments of grain and coal, the two biggest categories that Class I railroads haul by volume, diverged. Grain shipments grew by 7.8pc in August from a year earlier and were up for the tenth straight month, driven by strong grain exports. Coal volumes in August fell by 2pc from year-earlier levels and were down for the sixth straight month, AAR said. Coal has become a drag on overall rail volumes after driving growth earlier in 2026. Several Class I railroads have attributed falling coal volumes to lower natural gas prices and weaker utility demand. Railed coal traffic has fallen by more than 50pc over the past 20 years but remains the single highest-volume category for most US railroads, AAR said. AAR also pointed to falling inventories of railcars in storage as another sign of strong shipping demand. Stored railcars as a share of total cars in service fell to 18.1pc in August from 21.7pc in January, and more than 59,000 railcars have been taken out of storage over that period, AAR said. By Chris Baltimore Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more