MEG price declines on weak demand in Asia

Asian MEG prices fell US$7-12 a ton CFR China and CFR South East Asia in the first week of July. Mono ethylene glycol prices declined in Asian markets on weak demand that week. Downstream, polyethylene terephthalate resin plants in China were heard lowered their operating to 80-85%. China domestic MEG prices also decreased week on week.

In US, weak demand for MEG neutralised tightness as upcoming TAs limited spot availability. Meanwhile, arbitrage to Asia remained difficult. Thus, spot MEG prices were assessed stable.

European MEG spot prices were also stable on mixed sentiment and fall in July contract prices. Supply is expected to tighten through July.

Courtesy: Weekly PriceWatch Report

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