The exports jumped 23,684 mt, or 71.7% year on year.

South Korea typically exports over 99% of its MEG output to China.

Total MEG exports in 2011 was recorded at 402,527 mt, which represented a 37,903 mt, or 8.6%, fall from 2010. Market participants point to higher polyester production in South Korea in 2011 for the drop in the full year's export volume.

"South Korean polyester production rates was higher in 2011," said a source from a trading house in the country. "It was around 90-100% in 2011. Their operating rates were at 60-70% for a long time."

Meanwhile, South Korean producers were also focusing their production on ethylene oxide, which they said fetches a higher margin than MEG.

SOUTH KOREA'S MEG EXPORTS DESTINATION Dec 2011 (mt) Nov 2011 (mt) change (%) China 56,674 28,001 102.4 Source: South Korea Customs