Asia’s MEG prices exceed $1,000/tonne on concerns of supply cut

SINGAPORE (ICIS)--Asia's spot monoethylene glycol (MEG) prices rebounded to above $1,000/tonne CFR (cost & freight) CMP (China Main Port) because of concerns over a reduction in supply in May and stronger downstream sales, market sources said on Wednesday.

MEG prices were quoted at $1,012-1,025/tonne (€769.1-779.0/tonne) CFR CMP, $22-27/tonne higher from $990-998/tonne CFR CMP on 27 April, according to ICIS.

Many market players cited Taiwan’s Nan Ya Plastics shutdown of its 720,000 tonne/year No 4 MEG plant at Mailiao in mid-May for 40-50 days of turnaround and stronger downstream polyester sales as reasons for the price increase.

“The expectation that MEG supply in May will be cut and the stronger downstream sales after the holiday stimulated some traders to snap up cargoes, which pushed up prices,” a trader said.