1. Market Price
2. Market Review
China’s MEG spot prices
fluctuated upward this week. Up to July 4, the weekly average price of spot MEG
was RMB 4,703.5/mt in East China, up 3.44% W-O-W.
MEG port
inventory in East China remained low. MEG spot supply tightened, while rigid
demand stayed high, so MEG fundamentals were decent. On July 4, the offer for
spot MEG was RMB 4,750/mt in East China, and bids were
RMB 4,755/mt. The basis was at a discount of RMB 25-30/mt to MEG futures
contract EG2409.
3. Market Outlook
It is
predicted that the MEG market price will possibly inch down in the near term. The
negotiation prices of spot goods are estimated at RMB 4,600-4,750/mt next week.
Tight
supply may support the MEG market in the short term. However, with the restart
of MEG units and production cut plans of PET plants, MEG fundamentals will
likely weaken, restricting the price increase. The change in MEG and
PET industrial operating rates should be concerned.