Asia’s MEG prices dip to 21-month low amid poor sentiment

SINGAPORE (ICIS)–The spot prices of monoethylene glycol (MEG) in Asia dipped to a 21-month low on Friday amid poor market sentiment and weaker polyester demand, according to market sources.

Deals for May arrival and shipment were heard concluded at $878-880/tonne CFR (cost & freight) CMP (China Main Port) on 9 May, traders said.

On 4 July 2012, MEG prices in Asia were assessed at $875-895/tonne CFR CMP, according to ICIS data. 

A market source said that the downtrend in forward trading prices on the Huaxicun Commodity Exchange weighed down buying sentiments.

Some traders felt that MEG prices may continue on a downtrend amid volatility in the coming weeks.

“I dont see any chance of deep fall or sharp rebound [in prices],” a trader said, adding that however prices might see further softening.