15 June 2012 08:11 [Source: ICIS news]
By Jenny Jin
SINGAPORE (ICIS)--Monoethylene glycol (MEG) prices in east China have declined by 11% over the past two weeks, tracking falls in crude oil prices and amid weak demand from downstream polyester sector, industry sources said on Friday.
MEG spot prices declined to yuan (CNY) 6,330-6,380/tonne ($994-$1,001/tonne) ex-tank east ?xml:namespace>
Panic-selling in the MEG market ensued following sharp falls in crude prices. Some traders have been dumping cargoes to prevent further losses, while others are staying out of the market.
MEG buyers, on the other hand, are not too keen to procure cargoes. On Friday, crude prices were trading at above $84/bbl, down by about $2/bbl from the start June.
“Though prices decreased to the low level from 2011, I am still hesitating to purchase lots of cargoes considering the uncertain economic environment,” a trader said.
Downstream polyester producers in
Operating rates at
MEG inventories at Chinese ports have declined to around 750,000 tonnes this week from 800,000-850,000 a month earlier, with a number of Middle Eastern and Taiwanese producers that export MEG to China are conducting maintenance at their plants between May and June.
Chinese petrochemical major Sinopec, meanwhile, is still considering running its MEG plants at full capacity as production margins have improved with the softening prices of feedstock ethylene, market sources said.
($1 = CNY6.37)
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