MEG is used in the production of antifreeze fluid used in automobile radiators.
One South Korean MEG producer said that as a result of the spike in domestic demand for antifreeze his inventory is now low and he has no surplus to offer for export.
Typically, antifreeze fluid also experiences strong demand in September and October ahead of the winter. Noting the growth in the domestic automotive industry, another South Korean producer added, "September and October is the peak season for antifreeze fluid producers before the winter months as well."
South Korea's automotive industry is experiencing strong growth currently. In August, the country's largest and the world's fifth largest automaker Hyundai Motors reported a 17% jump in sales, while its affiliate Kia Motors saw sales leap by 55%. Hyundai and Kia have launched and are introducing more new models this year.
Even Sangyong Motor, which is in bankruptcy protection and has signed a preliminary acquisition agreement with India's Mahindra and Mahindra, saw its sales more than triple last month from a year ago.
China Chemical Weekly: http://news.chemnet.com/en/detail-1411716.html
