June nominations lower, but demand and supply largely stable in China except for spot fluctuations.
Major producers of monoethylene glycol have nominated their Asian contract price for June as follows:
|Third global supplier||$1,170|
The proposed ACPs, all on a /MT CFR Asia basis, on par or lower than May's numbers. MEGlobal's June ACP was a rollover from the previous month, while SABIC's was a reduction of $30/MT whereas the last of the trio saw its nomination down $25/MT. This has come on the back of lower spot values in the key Chinese market.
Demand is actually stable and supply overall snug against the backdrop of a series of plant downtimes. Gains in crude oil and naphtha futures over the past two months also justified relatively lofty spot MEG levels, which touched $1,010-1,015/MT earlier this month.
However, due to relatively weak feedstock ethylene costs and the imminent onset of the traditional, seasonal lull in the downstream markets, buying had become increasingly cautious.