Nominations for the MEG Asian contract price for March deliveries are all at $1,180-1,190/MT, either rolled over from the earlier month or with an increase of up to $20/MT. SABIC was the last of the majors to make known its ACP, at $1,180/MT CFR Asia.
The MEG markets in Asia have been staying quiet since last week, when the key Chinese market shut for the holidays. When business resumes spot prices are expected to rise above the last quoted range of $1,022-1,025/MT CFR China. Within the domestic market in China, there were already many end-users who returned to their desks earlier than usual to seek spot MEG purchases.
With crude oil prices once again increasing, naphtha futures had risen and most China-centric commodities looked set to rise further on the back of continual strong demand in the buoyant Chinese market. Against the backdrop of snug supplies of MEG and no fresh capacities coming online until the middle of the year at the earliest pressure on MEG is increasing.