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(ICIS) -- Asia monoethylene glycol (MEG)
prices are expected to firm in the next two months because of the start-up of
new downstream polyester capacities, stable supply and strong demand from the
textile sector, industry sources said on Thursday.
Asia MEG prices were at USD 1.200-1.205/tonne (EUR 840-844/tonne) CFR
(cost & freight) CMP (China Main Port) at the close of trading on 20 July,
up by USD 40/tonne from 12 July levels, according to ICIS data.
“Many speculative traders are in the market to seek cargoes as they
believe MEG prices will not have a big risk of falling and even have the
potential to rise in the second half of this year. This is because there will be
no additional MEG capacity expansion in 2011 and 2012, but some new downstream
polyester plants will come on stream in the following months,” a trader
said.
Around 1.3m-1.5m tonnes of polyester capacities are expected to start
up in the third quarter, market sources said.
As a result of the positive market outlook, many traders have been
actively purchasing August and September cargoes in anticipation of a price
increase, sources said.
mrcplast.com
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