Last week, MEG prices in Asian markets moved up as upstream crude, naphtha and ethylene costs rose, coupled with sustained buyer interest.
Asian contract prices for January announced by MEGlobal and Shell are at $850 per metric ton CFR mark.
This sparked a rally in spot prices and revised bids by buyers to cover their future needs. Low priced stocks are on the verge of exhaustion requiring replenishment; hence derivative January prices are placed higher.
Markets opened today with MEG buyer quotes standing at $790 per metric ton CFR levels. However, sellers anticipate January prices to mark up at or cross over $800 per metric ton CFR mark.
Market offers in China saw bids rising at RMB 7800 per metric ton ex-tank levels and above.
Meanwhile, the news of a week long shutdown in the Indonesian MEG producing firm GT Petrochem, scheduled for early January next year, may further lead to firming of prices, sources said.
marketing@alchempro.com
