In the first week of January, Asian MEG prices plunged US$49 a ton CFR China and CFR South East Asia or 5 per cent week on week.
Mono ethylene glycol prices plunged like it surged in the last week of December as demand fell closer to Lunar New Year amid high operating rates at MEG plants that produced excessively. Prices were also influenced by broader decrease in raw material cost.
In Europe, spot and January contract price jumped on Asian strength. MEG January contract price jumped Euro150 a ton while spot MEG FCA NWE offers surged during the week.
In US, MEG was assessed up from December 16 as the previous two weeks were in observance of year-end holidays. US MEG was up US cents 2 per pound from mid December.
MEG prices will continue to weaken in Asia in coming weeks due to the expectation of cutbacks in polyester during the Spring Festival holiday and under the influence from significant Yuan appreciation.
Courtesy: Weekly PriceWatch Report
