Reversing the deteriorating trend and giving a brief boost to the passive situations that had afflicted activity across the region's MEG markets, prices (MEG) last week in Asia soared.
Sources among sellers said the current situation bodes well, and though contract negotiations for December are being sought, spot markets continue remain passive.
Buyer on the spot cargoes quoted less than $770/mt CFR Asia mark, a price which sellers are overlooking and instead, supported by the renewed interest in contract negotiations sellers are targeting spot prices for MEG at the $790/mt CFR levels and above.
Subdued buyer interest has removed the steam off the sellers and as a result, derivative sector in its grip. Though they believe that from mid December onward, the market in the polyester segment fluctuate as buyers appear to refill their stocks.
In anticipation of such a period, they choose not to decrease the spot price offers for MEG and instead, are even consider a further revision upward at $820/mt CFR mark by middle of next month.
Another MEG buyer said sellers were goign overboard and getting excited about nothing.
In reality, some buying interest in Asia's MEG markets has been re-emerging last week at lower price levels, though this has not been enough to bring about any adjustment in offers.
MEG demand is on the lower side in the west together with the US and Europe, while upstream ethylene prices under negative pressure coupled with weak derivative product demand, there is no possibility of sellers to justify a hike in ratesfor the present.
