MEGlobal Monoethylene glycol Asia
MEGlobal lowers MEG May contract price in Asia by USD40 per ton
MOSCOW – MEGlobal, the world leader in the production of monoethylene glycol (MEG) and diethylene glycol (DG), nominated the MEG May contract price for Asia at USD800 per ton, which is USD40 per ton below April, an ICIS source said the company.
The price was named on CFR Asia delivery terms.
MEG prices in Asia show a downward trend as material stocks in main ports of China rose to a record high, although demand in the downstream market for polyester production remains at a good level. MEGlobal Monoethylene glycol Asia
Earlier it was noted that MEGlobal raised the April contract price of MEG for Asia compared to March level by USD10 per ton – to USD840 per ton, CFR Asia.
MEG, along with terephthalic acid (TPA), is one of the main raw materials for the production of polyethylene terephthalate (PET).
According to the ICIS-MRC Price Review , in mid-April, the calm situation on the Russian PET market remains. There are no signs of a current or possible future shortage of material on the market. The cost of free spot volumes from Russian producers is growing.
External background remains neutral and does not contribute to a significant increase in contract prices in the next month. It is expected that the formula prices in May will remain at a level below 100 thousand rubles. per ton, CPT Moscow, including VAT.
MEGlobal, headquartered in Dubai (UAE) is the world leader in the production of monoethylene glycol (MEG) and diethylene glycol (DG).
Established in July 2004, MEGlobal currently sells more than 2.5 million tons of DG per year worldwide. DG is used as a raw material for the production of polyester fibers (clothing and other textiles), polyethylene terephthalate (PET), antifreeze and other industrial products.
MEGlobal is a 100% subsidiary of Equate Petrochemical Company. In December 2015, Dow Chemical closed the sale of its stake in MEGlobal to Equate Petrochemical Company as part of a strategy to optimize its equity participation in Kuwaiti joint ventures.
Author: Margarita Volkova