China's December 2020 MEG import down nearly 12 pct

According to China Customs, China imported 551kt of MEG in December 2020, down 74kt or 11.84% month on month, and down 370kt or 40.17% year on year. In 2020, MEG imports totaled 10.55 million tons, up 601kt or 6.04% year on year.

About 310-320kt cargoes arrived in East China main ports in December, much lower than in November. In early Dec, the ship channel in Yangtze River Estuary was closed for five consecutive days after the container ship sank. The ship channel was closed again in late Dec for days due to heavy wind. Some cargoes were delayed to January 2021.

MEG imports in November and December of 2020 by origin

Import from Saudi Arabia remained low in December. Operating rates of MEG plants in Saudi Arabia were low due to weak economics, and producers chose to raise output of other products. Meanwhile, some cargoes were delayed to Jan 2021. Import would recovered in Jan with Dec delayed cargoes discharging and the arrivals of PetroRabigh's cargo. Supply from Saudi Arabia would remain low in the first quarter of 2021 due to scheduled maintenance of Sharq2 and Yansab.

Import from Taiwan Prov. was around 80-90kt in December, broadly flat from November. Nan Ya's No.2 unit remained closed and has no restart plan yet. The rest three lines of Nan Ya were running normally. MEG cash flow improved since late January, and Nan Ya would assess whether to restart #2 plant after the Lunar New Year.

Imports from Canada and Kuwait decreased slightly to around 70-80kt in Dec. Operating rates were low in Kuwait. Meanwhile, units in Kuwait may be closed for turnarounds in March 2021. The supply is hard to increase.

Import from Singapore decreased by around 38kt. Units were running well but exports decreased due to tight supply in Europe and local purchase in Southeast Aisa.

Imports from Iran, UAE and Oman increased by 28kt. In Jan, Morvarid and Farsa closed units for maintenance, and Marun was running at low rate. Overall output decreased and exports would keep low.

Import from the United States remained low in December, as some US-origin cargoes were shipped to Europe due to tightness there. Nan Ya's 360kta and 828kta MEG units both have turnarounds. The larger one would be restarted in early February, and the cargoes to China would be seen in April.

January import would recover with some Dec delayed cargoes arriving. Cargo arrivals are estimated at about 470-480kt at Zhangjiagang, and arrivals at Nantong and Changshu would also recover.