Global mono ethylene glycol (MEG) prices declined during the latest week, ending a four-week upward trend. Weak demand from the polyester and textile industries, along with better cargo availability, put pressure on prices.

The decline came despite renewed uncertainty in crude oil markets and ongoing geopolitical concerns. MEG is an important raw material for polyester production, making textile demand a key factor in market movement.

MEG Prices Decline Across Key Markets

MEG prices in India and Southeast Asia eased during the week. China recorded a smaller decline and continued to show stronger monthly gains than other major markets.

In Europe, MEG prices also moved lower. The European market did not fully participate in the earlier Asian price rally.

Regional price spreads have also changed. China now trades at a higher premium over India, while the premium for Northwest European MEG over India has narrowed.

Weak Textile Demand Weighs on MEG Market

The recent price decline reflects subdued demand across the polyester and textile value chain. Buyers remain cautious, while improved availability of cargoes has added further pressure to the market.

Market participants are closely watching crude oil prices, geopolitical developments and polyester demand. These factors could influence the direction of MEG prices in the coming weeks.

For textile manufacturers and polyester producers, changes in MEG prices remain important because they can affect production costs and downstream pricing.

Key takeaway: MEG prices have lost momentum after four weeks of gains, with weak textile demand and improved supply weighing on the market.