Published on June 9, 2014

Asian MEG prices are on constant rise from past few weeks. The MEG market was struggling in the month of April but since then demand for MEG has soared up in Asian market. Prices which were ranging around USD 900/MTS in the first week of April have ascended to the level of USD 970 in the first week of June. Lack of regional supply coupled with tightness in the domestic market has added to this plunge. Almost all the Asian countries are facing the common scenario of upheaval in the prices of MEG and other downstream products. 

Para Xylene prices have been rising continuously in the Asian and European market. This has lead to tightening in the supplies of the chemical thus plunging the prices of PTA. Delay in the starting of new plants for Para Xylene has turned the market sentiments and expectations into state of worry and chaos. On the week ending prices for Para Xylene and MEG were up by USD 20/MTS and were assessed at the level of USD 1255/MTS FOB Korea and USD 970/MTS CFR China. 

Rise in the feedstock prices has provided plentiful opportunity to the polyester manufacturer to increase their prices. Rise in the MEG futures and PTA futures in China market has further added pressure on to the polyester prices. Polyester has been gaining amid all these rises. Polyester market has witnessed improved production and sales performance. China and Pakistan are the two neighboring countries deals with lot of polyester market. Market analysts further anticipates the rise in prices and thus increase in the prices for polyester is expected in upcoming weeks. 

In a recent F&A show held at Bangalore, Polyagenta showcased its recycled polyester yarn. The product was centre of attraction due to its unique nature of reuse.