03 Jan 2022 | 15:25 UTC

Platts amends US MEG contract price methodology

S&P Global Platts has updated the methodology for the FOB US Gulf Coast monoethylene glycol contract price, effective Jan. 3, 2022.

Specifically, Platts has started calculating the MEG contract price as a simple netback from Asia, the key importing region of MEG from the US.

The Platts MEG CP is calculated as an average of three Asian monthly CPs, nominated by SABIC (code AAUOB00), Shell (code AAUOC00) and MEGlobal (code AAUOA00), less the US-Far East Asia liquid chemicals freight rate for 5,000 mt parcels (code AARJI00). The contract price reflects gross prices for fiber-grade MEG supplies within the current month under long-term contract agreements.

Since early 2019, Platts has observed nearly doubling of US MEG capacity to 4.7 million mt/year as producers brought new plants online with output largely slated for export, and another 1.1 million mt/year of largely export-bound US MEG is slated to start up by early 2022. The top export market for US MEG in the first 10 months of 2021 was China, the largest global consumer of MEG, to feed its polyester industry. China accounted for 28.5% of the total products exported in the January-October period.

The CP was formerly based on an average of North American and Asian monthly posted prices, with an applied discount. The full description of the US petrochemicals methodology and specifications can be found here: https://www.spglobal.com/platts/en/our-methodology/methodology-specifications/petrochemicals/americas-petrochemicals-methodology.

The assessment is published on Platts Petrochemical Alert fixed pages 305, 438, 236, on Platts Dimensions Pro and Platts Market Center, in Olefinscan, Polymerscan, and in the Platts database under the following codes: PHAXG04 (assessment), PHBDH03 (monthly average).

Please send feedback and questions to petchems@spglobal.com with a copy to pricegroup@spglobal.com.

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