European demand for monoethylene glycol has risen as both polyethylene terephthalate and antifreeze producers have raised availability inquiries and procurements, according to sources.
Supporting the increase in domestic demand has been rising Asian MEG prices that have made importing hard.
"MEG prices have picked up. PET and antifreeze [demand] has picked up. Producers are saying demand has increased. European prices are reacting to Asian price increases," said one trader. "Asia is becoming more and more important."
Asian prices rose $33/mt last week, spurred by firming demand from PET manufacturers in the region.
Meanwhile, European PET prices have risen Eur25/mt since the start of June, assessed at Eur1,025/mt ($1,1185) FD NWE on firming demand signals.
With increased demand from the PET and antifreeze industries, and a rising Asian market, European MEG prices have risen Eur30/mt since the start of the month, assessed last week at Eur770/mt FCA NWE.
The price spread between MEG and PET has now narrowed to Eur255/mt from Eur280/mt at the end of June.
