MEG ACP June nominations

15 May 2018 / MEG Update

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:

MEG Global $1,150
SABIC $1,150
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.