European MEG spot market

4 March 2019

A European MEG spot price recovery is set to continue after truck prices increased for a second week.

Elsewhere, spot prices in Asia have recovered in the last few days and there is an expectation that supply will decrease in the second half of March.
Prices in Europe have been on an important downtrend since Q4 of 2018, pressured lower by low import offers, good supply and lukewarm demand for larger volumes.

European supply in the first half of March is expected to be less lengthy as it is difficult to secure prompt material.

There was also talk of delays from the Middle East in terms of vessels. In addition, upstream local turnarounds are expected to begin soon, which could balance out European MEG supply.

In the meantime, European MEG contract talks are in their early stages following news of an increase of 30 Euro/MT of the ethylene monthly contract settlement late last week.