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MEG market: How did we get here, and what can we expect?
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Report summary
2022 market seems to be getting worse by the month for Asian and European producers. The oversupply effect is kicking in after a total of 6.6 Mt of nameplate MEG capacities started up last year. Naphtha-integrated margins fell to -$286/t in March, forcing various plants across Asia to reduce operating rates. MEG margins reached its current state after a series of events, culminating in a horrible March for almost all Asian and European MEG producers.
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