16 May 2014 10:56 [Source: ICIS news]
PATTAYA (ICIS)--The monoethylene glycol (MEG) market might show limited improvement in July-August, a major seller of MEG said at the sidelines of the Asia Petrochemicals Industry Conference (APIC) being held in Pattaya on 15-16 May.
The seller said that prices could increase but not by the same extent as the same period last year.
Paraxylene (PX) and purified terephthalic acid (PTA) prices might stabilise in June, with a temporary rebound in July. This rebound of PX/PTA prices might be the stimulus that market participants in the MEG arena are hoping for and prices of MEG might be lifted in tandem, the seller said.
However, MEG prices are unlikely to rebound $100-200/tonne CFR CMP, as seen in the same period in the previous year.
With the tightening of the supply of letters of credit (L/C) by Chinese banks and more risk management measures undertaken by Chinese trading companies, MEG traders would likely remain cautious in their dealings in the near term.
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