MEG price slips on weak downstream demand

Asian MEG prices declined US$23 a ton CFR China and CFR South East Asia in the second week of March. In China, prices went down from US$45 a ton during the week.

Mono ethylene glycol prices declined on the week on weak downstream demand as polyester producers skipped buying on ample supply. Meanwhile, traders were heard halting short-selling. Iran’s Farsa Chimie plans to restart its 450,000 ton a year MEG plant in Assaluyeh by end March, after it remained shut since mid-February.

In Europe, MEG prices fell as market lengthened amid weak demand. European spot MEG prices were down Euro30 a ton on the week.

In US, MEG prices were steady although market was described as tight. Producers were waiting for March, April demand increase and resisted movement from slightly lower product in Asia and held firm on the week.

Courtesy: Weekly PriceWatch Report

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