US MEG Market Sees Upward Movement in Early September 2025 Despite Weak Downstream Demand
Gabreilla Figueroa17-Sep-2025
In early September 2025, Mono Ethylene Glycol (MEG) prices in the U.S. Gulf rose due to tight supply and a modest recovery in domestic demand. The announcement of tariffs on downstream PET and rPET imports lifted market sentiment, encouraging slight procurement despite weak fundamentals. A planned shutdown at Formosa鈥檚 Point Comfort facility and ongoing logistical bottlenecks at key ports and rail hubs added upward pressure on MEG prices. Meanwhile, feedstock cost support remained negligible as ethylene oxide prices declined. Downstream PET demand stayed soft, but full tariff imposition on imports may support MEG consumption moving forward amid fragile market conditions and limited signs of recovery.
Key Highlights-
Constrained supply conditions, which helped to raise the MEG prices.聽
Local demand from downstream moved upward, amidst the tariff environment on the import.聽
Maintenance shutdown at Formosa Plastics Corporation.
MEG Price Movement (In Early September ****): In the initial days of September ****, MEG prices rose significantly in the U.S. Gulf region. By the week that ended on September **, prices scaled up by *.** to reach USD ***/MT, FOB US Gulf. This upward price movement was due to constricted supply conditions and slight recovery in the domestic demand. Locally, the announcement of additional tariffs on importing PET and rPET鈥攄ownstream derivatives of MEG鈥攔aised market sentiment, thereby slightly stimulating procurement activities in the wake of an overall weak demand foundation.聽
On the *th of September, Formosa Plastics Corporation started the maintenance shutdown it had preplanned for...
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