MEG price dives across all regions

Asian MEG markers fell US$34 a ton CFR China and CFR South East Asia in the first week of January.

In China, offers fell to US$590 a ton, and central negotiations softened to US$580-585 a ton.

Mono ethylene glycol prices fell in Asian markets on weak futures and aggressive selling. Falling Futures subsequently dragged down both physical forward and prompt prices for both H2 July and H1 August.

A few MEG units in Asia are likely to reduce the term supply in January as polyester producers will cut down MEG contract volume for 2016.

In US, MEG domestic pricing dropped to lowest in over 78 months due to lower feedstock and improved supply.

US spot MEG dropped US cents 4.50 to the 78-month low at US cents 25.50 per pound in the first week of January.

European MEG prices also declined on good availability amid low demand. Production issues were resolved which improved local supplies.

MEG prices fell Euro75 and Eur45 a ton FCA NWE and CIF NWE respectively.

Courtesy: Weekly PriceWatch Report

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