European MEG prices have seen a dramatic rise this month, buoyed by limited European material availability and rising Asian prices, pegged at Eur740-785/mt FCA NWE Thursday.
MEG prices were last assessed Friday at Eur685/mt. FCA NWE is up 6.2% since the start of the month. European weekly MEG prices are suspended until January 6.
"Availability is restricted because the US cargo is not going to Europe, shortening the European market," a producer said Thursday. "What cargo can be diverted from the Middle East will go to Asia."
Asian daily MEG prices were assessed at $840/mt CFR China Wednesday, up 15.2% from a month ago. Asian MEG prices had risen as high as $891/mt mid-December, a 17-month high, before softening slightly, S&P Global Platts data showed.
The industry also appears to be expecting a January increase off the back of a widely expected increase to the ethylene contract price for next month.
"If [ethylene] moves up I expect a significant change in [MEG] prices too," an industry source said Thursday.
Platts ethylene indicator was assessed at Eur977/mt Wednesday, up Eur37 from December's CP of Eur940/mt FD NWE. Ethylene appears bullish amid gains in the energy complex in December.
