Mono ethylene glycol prices in Asian markets declined in the first week of August as traders turned increasingly bearish amid falling crude oil, which depressed prices of polyester feedstock. Markets were spooked further by reports of the huge inventory built up in east China inventory, which was attributed to low operating rates at Chinese polyester industry.
In US, spot MEG tracked falling Asian numbers while August contract assessment fell despite upcoming turnarounds which could tighten supply. European MEG spot was down touching a six month low while August contract was expected to settle lower.
Asian MEG prices fell US$10 a ton CFR China on the week while Southeast Asian numbers were stable. In US, spot MEG prices fell another US cents 1.50 per pound FOB USG. MEGlobal had cut its North American benchmark contract price for August by US cents 3 per pound to US cents 49 per pound. August contract assessment also fell US cents 3.4 per pound. European MEG spot prices continued the downward spiral which began mid June. Prices were down Euro20 a ton in the first week of August.
Courtesy: Weekly PriceWatch Report
