Monoethylene glycol (MEG) prices have spiked in line with soaring ethylene prices as the Northeast Asian market returned to work after last week’s holidays, as per Platts. On Friday, MEG prices were assessed at US$804/MT CFR China, but on Monday afternoon bids were at US$830-845/MT CFR China. In comparison, there were fewer offers in the market with selling indications at around US$860/MT CFR China. Downstream demand is starting to pick up from PET and polyester industries.
Meanwhile, the shortage of feedstock ethylene at Taiwan's Nan Ya Plastics has led to tighter MEG supply, helping to support prices. The company has idled two of its three 350,000 tpa MEG lines at Mailiao on ethylene shortage after its affiliate Formosa Petrochemicals shut its steam cracker due to a fire. The company is still running its 350,000 tpa and 700,000 tpa lines at full capacity. China will observe a long holiday starting Friday through next Thursday when the market is expected to come to a standstill again.