Asia MEG rises $14-28/tonne on concerns over US supply

29 August 2012 11:58  [Source: ICIS news]

SINGAPORE (ICIS)--Asia’s monoethylene glycol (MEG) spot prices gained $14-28/tonne (€11-22/tonne) to a five-month high on Wednesday on concerns over supply as large-scale plants in Louisiana, US, may have been shut in the wake of Hurricane Isaac, market sources said.

MEG was assessed at $1,045-1,068/tonne CFR (cost and freight) China Main Port (CMP) at the close of trade, according to ICIS.

Some spot MEG lots were settled at $1,065-1,070/tonne cost & freight (CFR) China Main Port (CMP) in the late afternoon, while traders booked material in the morning at $1,045-1,050/tonne CFR CMP.

“We are not sure whether the major US MEG plants have been shut, but traders are actively bidding up prices,” a major regional trader said.

China imports MEG from the US. It took in a monthly volume of 12,000 tonnes of US MEG in June and July, according to China Customs.

A number of refinery and petrochemical operations in the US Gulf were shut because of Hurricane Isaac, which made a landfall in Louisiana late on Tuesday.

Shell Chemical runs a 125,000 tonne/year and 250,000 tonne/year MEG plants at Geisma, Louisiana, while Dow Chemical has a 385,000 tonne/year MEG unit at Taft in the same state.

($1 = €0.80)

By: Becky Zhang
+65 6780 4359

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