Asia MEG falls for third day; down $34-35/tonne on panic-selling

15 March 2012 11:08  [Source: ICIS news]

SINGAPORE (ICIS)--Spot monoethylene glycol (MEG) prices in Asia shed a further $34-35/tonne on Thursday as traders continued to offload inventory.

Prices were assessed at $980-1,000/tonne (€755-770/tonne) CFR (cost and freight) CMP (China Main Port), falling for the third straight day, according to ICIS.

Afternoon deals were fixed at $980-990/tonne CFR CMP, with one cargo with no designated tanks heard done at $975/tonne CFR CMP, market sources said. More than 10,000 tonnes of MEG parcels exchanged hands on Thursday.

While first-tier traders were keen to offload forward cargoes amid bearish sentiment, some second-tier traders were looking to build up their inventories, expecting MEG prices to be supported by high feedstock cost.

A 1.56% fall in China's purified terephthalic acid (PTA) futures market exacerbated traders’ bearish sentiment.

PTA is a co-feedstock of MEG in polyester production.

Spot PTA prices in Asia also fell by $9-14/tonne on Thursday to $1,151-1,170/tonne CFR CMP, according to ICIS, given poor sales at downstream polyester sector.

Polyesters sales-to-output ratio in China further declined to 50% from Wednesday's 60-80%, in line with soft fibre intermediates prices.

($1 = 0.77)

By: Becky Zhang
+65 6780 4359

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