01 March 2013 08:08 [Source: ICIS news]
SINGAPORE (ICIS)--Asia’s monoethylene glycol (MEG) prices plummeted to a four-month low on Friday, in line with declines in China’s purified terephthalic acid (PTA) futures market, on bearish sentiment as the US’ heavy budget cuts take effect on 1 March.
Bid-offer prices for spot MEG cargoes fell to $1,040-1,050/tonne (€790-798/tonne) CFR (cost and freight) China Main Port (CMP), down by $29-30/tonne from Thursday, market sources said.
An end-user secured a March MEG shipment at $1,040/tonne CFR CMP in the afternoon, according to ICIS.
Spot MEG prices have shed a total of $100/tonne this week following successive downbeat development from the macroeconomic front.
China recorded a lower purchasing managers' index (PMI) reading of 50.1% in February, indicating a slowdown in the coutry's manufacturing activities. The US' heavy budget cuts, on the other hand, could mean a further weakening of the world's biggest economy.
“We are just watching the market, [and] avoiding taking positions amid the rapid falls [in prices],” a major Chinese trader said.
At the Zhengzhou Commodity Exchange, September PTA futures closed at yuan (CNY) 8,240/tonne on Friday, down by 2.2% or CNY184/tonne from the settlement on 28 February.
($1 = €0.76)
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