- Asia MEG margins remain weak- The sellers believe the price is at its bottom



As some demand renewed, the monoethylene
glycol CFR China price indicator gained $12-17/mt. The August ICE Brent crude
oils futures fell $2.03-3.50/b per day to $121.24-140.50/b at 0830 GMT Asian
closing on June 15. Producers said that Asian
MEG margins were not competitive. After a
long price decline, the demand isn't that strong but import prices are
stabilizing. A major Northeast Asian
producer said that margins remain negative when you consider the price of
ethylene feedstock. China's mass COVID-19
testing in Beijing and the reinstated restrictions in Beijing have weighed on
sentiment. Some market participants believe this will affect downstream
polyester markets as production of finished goods is expected slow. Not all of the bearish sentiments were negative. Northeast Asia producers said...