MEG price climbs on tight supply in Asia

Asian MEG markers spurted US$15 a ton CFR China and CFR South East Asia in the last week of February. In China, offers stayed high, and discussions and trading values picked up accordingly.

Post midweek values were hard to rush higher, with numbers weakening US$5-10 a ton. Weekend saw values recovering to the early week levels.

Mono ethylene glycol prices moved up in Asian markets on the week due to continued supply tightness and support from firming ethylene cost. Upcoming plant maintenance are likely to support MEG markets in coming weeks.

European MEG prices rose, tracking Asian numbers while availability was balance to tight amid long DEG. Ineos has planned maintenance at its MEG unit at Antwerp, Belgium, in May. MEG spot price increased Euro10 a ton FCA NEW on the week.

In US, MEG spot was bracing for pressure. Supply will tighten on turnarounds while downstream market was gearing up for the upcoming demand season.

Courtesy: Weekly PriceWatch Report

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