11 May 2011 07:01 [Source: ICIS news]
SINGAPORE (ICIS)--MEGlobal has rolled over its June Asian Contract Price (ACP) monoethylene glycol (MEG) nomination from its May level at $1,250/tonne, a company official said on Wednesday.
“We nominated our June ACP at $1,250/tonne (€863/tonne) CFR (cost & freight) Asia as we believe prices will fluctuate in a narrow range for a certain period of time,” the source said.
He said potential downsides for spot MEG prices were limited as there was consistent buying interest from traders who were optimistic for the second half of this year in view of the upcoming shutdowns in the region.
Taiwan’s Nan Ya Plastics said it will conduct turnarounds at its four MEG plants, with a total capacity of 1.8m tonnes/year, from 1 July.
“Hefty feedstock ethylene costs also lent support to MEG prices,” the source added.
However, abundant supply and lower-than-expected downstream demand will continue to exert downward pressure on prices, he said.
Asia spot MEG prices were discussed at around $1,095-1,105/tonne CFR CMP (China Main Port) on Wednesday morning. The prices have been hovering between $1,090-1,135/tonne CFR CMP for a month, according to ICIS.
($1 = €0.69)
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