Coal-based MEG unit to see a new round of maintenance

Coal-based MEG producers are inactive to keep running their units at high rate on deteriorating margins with the continuous price fall. Up to July 15, the settlement price is around 4,329.7yuan/mt, down around 12% month on month.

Recently, producers have gradually conduct maintenance. HNEC Yongcheng #2 and CNSG Anhui Hongsifang will carry out maintenance since the end of July. Considering equipment and technicians, most turnarounds would be conducted in August but without clear timing. In addition, restarts of several units due to good profits in the first half of 2022 have been put aside as well. The operating rate of coal-based MEG units is expected to fall to around 40% in Aug, and the lowest level might be around 35%.

Coal prices maintained high in the consumption peak season, so producers are likely to shut down units for maintenance due to weakened production margins. And the restarts of those units might be also postponed if production margins could not see clear improvement.