Glycols producer MEGlobal announced Monday that it will decrease its April 2015 arrival mono-ethylene contract price by $20/mt to $940/mt CFR Asian main ports.
The rise comes as feedstocks prices have risen during February as crude oil prices recovered from the lows hit in January.
“The April 2015 ACP reflects the short-term supply/demand situation in the Asian market,” a company source said.
Despite the rise in MEGlobal’s nomination, MEG spot prices fell on a retreat in crude and futures prices last week.
So far in March, Asian MEG spot prices have fallen $21 to be assessed at $817/mt CFR China, down from the February 27 Platts assessment of $838/mt, according to Platts data.
Last week a collapse in PTA futures added to the already bearish market sentiment.
Actively traded March MEG futures on the Huaxi Commodity Exchange closed sharply lower on Thursday, at Yuan 6,234/mt ($995/mt), from last Monday’s close of Yuan 6,626/mt.
Canada-headquartered MEGlobal, a 50:50 joint venture between US-based Dow Chemical and Kuwait’s Petrochemical Industries, represents one of three major producers to nominate monthly Asian MEG contract prices.
– Platts.com
