MEG price falls on bearish outlook

Asian MEG prices fell US$10 a ton CFR China and CFR South East Asia in the third week of July. In China, offers for nearby-month goods were pegged stable, and counter offers were steady. Bonded goods and forward-month were US$5 a ton higher over nearby-month goods.

Mono ethylene glycol prices in Asian markets fell on bearish outlook and profit taking. Traders sold H1/H2 August swaps as Futures declined on Huaxicun exchange following a brief respite from falling spot prices.

In US, MEG spot held flat amid turnarounds, which have tightened supply enough to limit the volumes available for export. Higher spot ethylene pricing also started putting pressure on producers to increase MEG price.

European MEG market was stable on mixed sentiment while demand was heard weak.

Courtesy: Weekly PriceWatch Report

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