MEG price gains in Asia, down in US and Europe

Asian MEG markers gained US$20 a ton CFR China and CFR South East Asia in the third week of December.

SABIC nominated its January Asia Contract Price at US$730 a ton CFR Asian main ports, down US$40 from December.

In China, the upper range of prices remained limited at US$570 a ton.

Mono ethylene glycol market sentiment in Asia was supported by news last week that Taiwan’s Nan Ya Plastics will shut its 720,000 ton a year MEG plant at Mailiao for a month due to poor margins and that producer will cut contract volumes for December and January. Thus, prices edged up on producers and traders buying activity.

Meanwhile, SABIC nominated January Asian contract price down from December.

In US, spot MEG declined on the week, pushing prices to the lowest assessment in more than six years. MEG spot edged down US cent 0.5 per pound FD USG.

European MEG spot prices fell steeply on weakened fundamentals and outage-related highs by a fall in demand on seasonality.

European spot price tumbled Euro25 a ton FCA NEW on the week.

Courtesy: Weekly PriceWatch Report