European monoethylene glycol price ideas were weighed down by the fall in Asia markets this week and increased offers of imports from the US, sources said Friday.
MEG prices in Asia plummeted $36 from last Friday to $774/mt CFR China Thursday, dragged down by a sharp inventory build of 93,900 mt to 607,900 mt in east China this week.
This weighed on European sentiment along with increased offers from the US market to Europe.
Prices in Europe were pegged at Eur800/mt ($873/mt) and below for CIF NWE Friday, compared to assessment of Eur820/mt CIF NWE last Friday.
Last Friday’s assessment was the lowest since April 10.
Expectations for the European August contract price for MEG was also bearish due to the fall in the spot prices.
The July MEG CP settled at Eur1,088/mt FD NWE.
Polyethylene terephthalate producers were eying triple-digit falls while MEG producers were looking to track the ethylene drop.
August ethylene CP settled at Eur1,035/mt FD NWE, down Eur70 on the month.
Ethylene is a feedstock for MEG. MEG is a feedstock for PET.