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I. Market review
Average price in April market, one deal was heard done at $895/mt for
Traded Change mid/late April cargoes and one deal of bonded
price goods in Zhangjiagang was settled at $910/mt
Chinese domestic (by 8384.13 ↗244.81 CFR L/C 90 days, despite rare offers and
cash, ex-tank) transactions on the market.
However, MEG spot market weakened
Import ($/mt CFR China) 901.74 ↗26.38 upon the declining oil prices with the solved of
British navy event from the end of early April.
Some traders took in goods at low prices early on
MEG spot market gained momentum from made profit taking on the market. The medium
high operating rate of polyester plants, increase and large deals were generally done at
of polyester products, surging ethylene and PX 8180-8200yuan/mt by cash, ex-tank in
prices and firm PTA market in April. MEG spot Zhangjiagang with 400mt done at 8150yuan/mt
prices averaged at 8384.13yuan/mt, by cash by cash, ex-tank in Taicang, Jiangsu province.
ex-tank on the month, 244.81yuan/mt higher than The offers of foreign goods were rare and the
March’s. In import market, the traded prices deals for mid/late April cargoes ruled at
averaged at $901.74/mt CFR China L/C 90 days, $885-890/mt CFR China L/C 90 days.
added $26.38/mt. In mid April, traders and polyester producers
At the end of March and early April, went back to the market after MEG prices
influenced by the “British navy event”, dropped for several days and the enquiries
international oil futures kept climbing up. In increasingly put forward. Later, with oil prices
addition, strengthened PTA spot market and bounced back, PTA market firmed in line.
rising polyester product prices were all attributed Meanwhile, Asian ethylene price surged greatly
to the continually increasing of MEG prices. In on the tight supply caused by the turnarounds of
Zhangjiagang, deals were largely done at crackers in Indonesia and South Korean. In
8300yuan/mt by cash, ex-tank on average. In US addition, the MEG stock of most polyester plants
1
China Chemfiber &Textiles April 2007
was less than PTA, so with the upcoming of May Malaysia 8814041 7613119
Day holiday, the polyester producers began to Kuwait 7967637 6761279
replenish stocks. The offers of MEG spot Mexico 4917500 4317677
apparently increased. In Jiangsu and Shanghai, France 13200 30709
medium and large deals were done at Italy 6020 18340
8500-8550yuan/mt by cash, ex-tank in
Singapore 3920 8978
Zhangjiagang, while traded prices of foreign
UK 990 6797
goods added to $920/mt with higher at $950/mt
China 2343 6144
Germany 38 674
Contract
Switzerland 4 53
MEG Contract Nomination of Major Suppliers
Total 403910687 347907254
(Yuan/mt)
Yangzi PC CNOOC-SHELL
III. Plant news
Offer settlement Nomination 1. South Korean Lotte Daesan closed its 250kt/yr
MEG unit on early April for 3 weeks turnaround as
Jan 8250 planned.
Feb 8250 8250 8300 2. Shell has resumed its NO 2 unit in Louisiana
Mar 8500 8300 8500 after one-month maintenance. The capacity of
Apr 8400 8500 8400 Shell’s NO 2 and No. 3 units totals 400kt/yr.
($/mt) SABIC MEGLOBAL SHELL ran regularly with operating rate at 70-80%.
4. Huntsman will resume its long-term unused
Feb 930 930 900
363kt/yr unit in Port Neches at the end of 2Q or
Mar 930 940 930
beginning of 3Q.
Apr 950 960 950
5. Taiwan Formosa decided to delay startup of its
May 950 960 950
No 3 cracker from mid May to the end of May and
its 600kt/yr MEG unit will be officially operated in
II. Imports
Jun.
China imported 403,900 metric tons of MEG
6. Polioles shut down its Lerma 100kt/yr unit in
in March, 39,100 metric tons less than Feb.’s and
early April. It is said it only kept 60% operating
the average price was at $861.37/mt, down by
rate and Pemex will offer its 60kt/yr supply gap,
$16.24/mt from Feb.’s.
which will decrease Pemex goods in spot market.
7. MEGlobal’s MEG unit in Canada will go into a
MEG Imports in February 2007
planned turnaround in May and June. Since 12
Origin Quantity (kg) Value (USD)
May, it will close its 350kt/yr Prentiss No 2 plant in
Saudi Arabia 159866499 136461600
Alberta for five weeks. It also plans to shut down
Canada 86510315 73577779
its 320kt/yr plant in Fort Saskatchewan for three
US 51197652 45425348
weeks. MEGlobal’s supply remained tight since
Taiwan 41274903 36167770
early this year, as the company began to supply
Japan 17050412 15001228 MEG to 450kt/yr PET plant of Brazil M&G.
Thailand 14331852 12207758
South Korea 11953361 10302001 IV. Market outlook
2
China Chemfiber &Textiles April 2007
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