Asian MEG markers surged US$17 a ton CFR China in the third week of March. In China, nearby-month goods were offered at US$725 a ton and bid at US$720 a ton. Forward-month goods were quoted at US$740 a ton, with bids at US$725-730 a ton.
Mono ethylene glycol prices rose in Asian markets on firmer futures in China rising crude values while plant issues tightened supplies.
Middle East producer Saudi Kayan Petrochemical was reportedly in the middle of a 40-day reactor maintenance shutdown while global major MEGlobal's supply to Asian customers remained limited for an unspecified period due to continued feedstock issue.
In US, MEG spot tracked Asian numbers and gains in feedstock. Supply was tight due to maintenances. Spot MEG increased US cent 1 per pound FOB USG on the week.
In Europe, curtailed domestic MEG supply continued and producers started buying imported cargoes as spot price rose on tight supply. MEG prices rose Euro40-48 a ton FCA NWE as market saw bearish signal from China.
Courtesy: Weekly PriceWatch Report
