Xinjiang Tianye has reportedly taken its No.3 Monoethylene Glycol (MEG) unit in Shihezi, China, offline, according to market sources. Industry participants informed that the facility was shut in early September 2025 for maintenance purposes, though the precise length of the outage has not yet been confirmed.
The company has not issued an official statement regarding the shutdown, leaving buyers and traders uncertain about the timeline for the plant’s return to operation. With a production capacity of 600,000 metric tons per year, the No.3 unit is considered one of the significant contributors to China’s domestic MEG output, making the news particularly relevant for stakeholders across the polyester value chain.
Monoethylene glycol plays a critical role in the manufacture of polyester fibers, resins, and films, as well as serving as a key ingredient in antifreeze and industrial coolants. Any disruption in supply from a large-scale facility such as Shihezi can create ripple effects across downstream sectors, particularly textiles and packaging, which remain heavily dependent on steady feedstock availability.
Market observers highlight that the timing of the outage coincides with ongoing adjustments in global MEG supply-demand balances. China, being a leading producer and consumer of MEG, holds substantial influence on regional price trends, and a reduction in output from Xinjiang Tianye may weigh on short-term market sentiment. However, the absence of clarity on the duration of the shutdown has left the extent of its impact still uncertain.
As the situation develops, industry participants are keeping a close watch for official updates or signs of when the unit may restart. Until confirmation is received, speculation will continue regarding the plant’s downtime and its broader implications for MEG trade flows across Asia.
