Asian MEG - Trade thin on weak downstream■ MEG markets are
receiving limited support from falling ethylene prices■ Outlook bearish on weak polyesterThe Asian MEG markets were quiet on Aug.
12, with little trading activity due to low demand and weak polyester
production margins. Market
sources say prices rebounded slightly due to rising crude oil prices but
overall trade remained limited. The MEG
markets were not helped by falling upstream ethylene prices, as buyers remained
cautious due to eroded margins. According
to market participants, buying was still under pressure because downstream
polyester prices were low and inventories were high. "Production margins of several polyester grades are
still negative and producers are decreasing operating rates. A trader in China stated that this has resulted in a
decrease in demand for MEG, as people are concerned about increasing inventory...