14 January 2014 06:05 [Source: ICIS news]
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SINGAPORE (ICIS)--MEGlobal has lowered its February monoethylene glycol (MEG) Asian contract price (ACP) nomination by $30/tonne from January, according to a company document obtained by ICIS.
“The February MEG ACP nomination will be $1,180/tonne CFR (cost & freight) Asia to reflect the short-term supply and demand situation,” MEGlobal said in a note to clients.
MEGlobal is a joint venture between US-based Dow Chemical and Kuwait’s Petrochemical Industries Co.
Saudi Arabia’s petrochemical giant SABIC has also cut its MEG ACP nomination by $30/tonne to $1,170/tonne CFR Asia on 13 January.
Shell, which is another major MEG supplier in Asia, has yet to announce its February ACP nomination.
Lower February ACP nominations were in line with falling spot prices of MEG amid weak demand in the downstream polyester market, traders said.
At the close of trade on 13 January, spot MEG prices in Asia were at $995-1,002/tonne CFR CMP (China Main Port), down by $47-56/tonne from a month ago, according to ICIS.
Some sellers were offloading cargoes ahead of the Lunar New Year holidays, market sources said.
Most market participants expect a further weakness in downstream demand in February, during the Lunar New Year celebration.
The Lunar New Year, which is celebrated in most parts of northeast and southeast Asia, falls on 31 January 2014.
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