Chemicals, Solvents & Intermediates, Olefins
November 21, 2025
US MEG sellers may now consider India for exports, but remain focused on China
HIGHLIGHTS
BIS lifts import controls on global EG
US seeks to export domestic supply glut
Netbacks to India worse than for China: trader
Despite the Indian government's lifting of quality control standards on imported ethylene glycol, EG sellers do not expect India to replace China as the primary destination for US exports, US glycol traders said in the week to Nov. 21.
The Bureau of Indian Standards, India's state body regulating trade, rescinded a 2021 policy setting limits on imports of global EG and other petrochemicals, effective Nov. 12, according to a statement from the country's BIS Department of Petrochemicals.
The decision had been highly anticipated among US EG sellers, who are seeking alternative export markets to China following the deterioration of trade relations between the two countries.
Prior to April tariff announcements, China was the primary recipient of US EG, importing approximately 90,000-100,000 mt/month, according to multiple sources.
Indian consumption is estimated to reach 40,000 mt/month, according to two traders, making it the highest volume alternative to China.
Tanks in Turkey, Egypt, and ARA -- the other primary destinations for US glycol-- remain full, according to a distributor, with Latin American buyers also unable to absorb the surplus.
Netbacks to India are "much worse," one trader said, estimating Indian monoethylene glycol prices at a discount of $30/mt to the Asia spot price. "Freight is the same for China or West Coast India," the trader added.
Platts assessed MEG CFR China at $452/mt on Nov. 21, down $5.50 on the day and $18 on the week.
US producers are "within days" of idling MEG production, according to the second trader, who said buyers are "full with contract volumes" and the market is "very long."
Buyers in India are asking for triple-digit discounts to the ASP, according to an Asia-based producer, requesting prices as low as ASP -$120/mt.
Discounts for US buyers remain within $90-$95/mt, the producer said.
Platts last assessed MEG FOB USG at 17 cents/lb ($374.78/mt) on Nov. 14, flat on the week.
Platts is part of S&P Global Energy.
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