Monoethylene glycol: Overview
Half of every polyester shirt's recipe, and your car's antifreeze
Half of every polyester shirt's recipe, and your car's antifreeze What this tab covers What the chemical is, how big its market is, what it is used for (with shares, volumes, why it wins and what could replace it), and its chain from raw material to end user. Ends with three things to remember.Monoethylene glycol (MEG, HOCH2CH2OH) is a clear, viscous liquid made mostly by hydrating ethylene oxide, and in China increasingly from coal-derived syngas. Combined with PTA it makes polyester fibre and PET resin, which take about 80% of demand; the rest goes into antifreeze and coolants. World capacity is about 60-65 Mt a year against output of about 35 Mt (indicative), so plants run well below capacity. MEG matters to India because the polyester chain from Surat to Tiruppur depends on it, and imports come largely from the Gulf.
Volume about 35 Mt produced a year (2025, indicative) Market value about $18-20 billion a year (indicative: about 35 Mt x about $510-560/t, 2025 CFR China levels) Growth about 3-4% a year, tracking polyester (indicative) indicative (basis: Argus EO and Derivatives 2025 prices and industry capacity estimates); value derivedKey uses
| Use | Share | Annual volume | Why this commodity | Alternatives |
|---|---|---|---|---|
| Polyester fibre and filament | 52% | about 18 Mtbasis | MEG is one of two monomers for polyester, the world's largest textile fibre. About 0.34 t MEG goes into each tonne of polyester, and no other diol matches its cost. indicative (basis: industry splits) | cotton and viscose fibres bio-MEG recycled polyester |
| PET bottle resin | 28% | about 10 Mtbasis | Same chemistry as fibre, with higher molecular weight for bottles and food packaging. Recycled PET can replace virgin MEG demand. indicative | rPET glass, aluminium, cartons |
| Antifreeze and coolants | 8% | about 2.8 Mtbasis | MEG lowers water's freezing point and raises its boiling point cheaply. EVs still need coolants for batteries. indicative | propylene glycol (less toxic) |
| PET film and other polyester | 4% | about 1.4 Mtbasis | Packaging and electrical film. indicative | BOPP film |
| Other: unsaturated polyester resins, heat transfer, de-icing | 8% | about 2.8 Mtbasis | Smaller uses where a cheap diol is needed. indicative (remainder) | propylene glycol DEG |
From raw material to user
- Ethylene or coal About 0.6 t ethylene per t MEG via EO, or coal gasified to syngas in China (indicative).
- Ethylene oxide About 0.75 t EO per t MEG (indicative).
- Hydration EO plus excess water at about 200°C gives about 90% MEG, with DEG and TEG co-products; Shell OMEGA and Dow Meteor routes via ethylene carbonate push MEG yield above 99% (indicative).
- Shipping and storage Shipped as a non-hazardous liquid in chemical tankers; Chinese port stocks are a key market signal.
- Polyester MEG and PTA are polymerised in roughly a 1:2.5 ratio by weight (0.34 t MEG and 0.86 t PTA per t polyester, indicative).
Made from (commodity table)
Oil Crude oilGas Natural gasTc Thermal coalThree things to know
- MEG traded at about $508/t CFR China on 1 Oct 2025, near multi-year lows (Argus).
- China built coal-based MEG on a large scale; units like Meijin (300 kt/yr) and Jianyuan (260 kt/yr) swing output with coal and MEG prices (Argus 2025).
- Middle East disruption in 2026 cut Gulf MEG exports and MEG prices rose nearly 8% in one week in August 2026 (ICIS via Hellenic Shipping News).