MEG price gains as crude oil price rebounds

Asian MEG markers gained US$18 CFR China and CFR South East Asia in the third week of January.

In China, MEG values inched down in first half on weak crude oil price, and negotiations fell to US$540 a ton. As crude rose MEG prices surged US$20 a ton in the second half of the week.

Mono ethylene glycol prices surged in Asian markets as crude oil rebound and MEGlobal immediately limiting MEG supply to Asian customers for an unspecified period due to a shortage of feedstock at its plants in Kuwait.

In US, spot MEG prices hovered at 78-month low while demand remained on an average.

European MEG prices continued their decline, despite rising prices in Asia while its premium to Asian prices narrowed down sharply.

Reportedly, good supply was heard tightening while upstream ethylene continued to decline. Overall, there is still very low possibility for MEG market to change significantly in a short run.

Courtesy: Weekly PriceWatch Report

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