Asian MEG prices tumbled US$45 a ton CFR China and CFR South East Asia marker in the third week of April. Mono ethylene glycol spot hit a 6-month low on high stocks as prices tumbled amid ample supply in China and a rise in feedstock ethylene costs. Prices also plunged on talk of short-selling while in China, prices plummeted as inventory levels grew dramatically.
In US, spot MEG prices were firm and flat for a second consecutive week, as a balanced market continued to offset price movements. Barge activity continued to remain stagnant while China was at net back to low for US market.
In Europe, MEG prices were stable with market in balance, although demand remained soft. Overall, with soft MEG fundamentals, it is likely that prices will weaken further following slight fluctuation.
Courtesy: Weekly PriceWatch Report
