Asia MEG spikes $70-80/tonne on Nan Ya shutdowns

01 June 2011 08:01  [Source: ICIS news]

SINGAPORE (ICIS)--Asia’s spot monoethylene glycol (MEG) continued to spike, surging by $70-80/tonne (€48-55/tonne) on Wednesday, following shutdowns of Nan Ya Plastics' two plants with a combined 1.18m tonne/year capacity in Mailiao, Taiwan, market sources said.

Three bonded warehouse cargoes were heard changing hands at $1,240-1,250/tonne CFR (cost and freight) CMP (China Main Port) on Wednesday morning, while negotiations for June shipment rose to $1,270-1,280/tonne CFR CMP.

These represented a sharp increase from Tuesday’s close, and an 11% jump over the past three trading sessions, according to ICIS data.

“We shut our No 3 and No 4 MEG plants today, but are still trying our best to negotiate with the government for an earlier restart,” said a source at Nan Ya Plastics.

The No 3 unit can produce 360,000 tonnes/year of MEG, while the No 4 unit has a 820,000 tonne/year capacity.

Taiwan’s Yunlin County government ordered the shutdown of the two MEG plants, along with some other downstream plants of the Formosa group, in connection with a 12 May fire at the Mailiao petrochemical complex.

($1 = €0.69)

By: Becky Zhang
+65 6780 4359

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