MEGlobal quoted MEG Asia contract prices for May around US $870 per metric ton CFR Asia mark, which provoked buyers as this was higher than the April prices at $850 per metric ton.
Sources explain that the traders are aggravated by these rates as presently, the spot offers are pegged around $830 per metric ton with buyer bids lowered to $810 per metric ton.
However, prices are expected to rise with increasing demand in polyester derivative sector and limited supply of MEG.
Strength in upstream energy prices is backing this hike in MEG rates.
Besides, closure of MEGlobal's 380,000 metric tons per year OPTIMAL ethylene glycol plant in Malaysia and its 350 kilo tons per annum EQUATE ethylene glycol unit in Kuwait along with a turnaround at Taiwanese firm Nan Ya's 438 kilo tons per annum No.2 plant in Mailiao have all, further added to the already limited supply that inturn support the climb in prices.
MEGlobal is a world leader in the manufacture and marketing of merchant monoethylene glycol (MEG) and diethylene glycol (DEG), collectively known as ethylene glycol (EG).
marketing@alchempro.com
