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MEG Market Weekly (Nov 8-12, 2010) |
|
2010-11-15
| Price |
| Spot |
|
8-Nov |
12-Nov |
Weekly Average |
Trend |
| |
WTI crude futures |
87.1 |
84.9 |
86.9 |
→ |
| Feedstock |
Naphtha ($/mt CFR Japan) |
795.3 |
799.8 |
802.6 |
→ |
| Ethylene ($/mt CFR NE Asia) |
971 |
979 |
975.2 |
→ |
| MEG Spot |
China domestic (Yuan/mt cash, ex-tank) |
9050 |
8500 |
8926 |
↘ |
| Import market ($/mt CFR China L/C 90 days) |
1128 |
1055 |
1126.6 |
↘ |
| MEG Contract |
|
Aug |
Sep |
Oct |
Nov |
| SABIC ($/mt CFR Asia) |
850 |
880 |
900 |
1020 |
| SHELL ($/mt CFR Asia) |
790 |
870 |
900 |
1030 |
| MEGlobal ($/mt CFR Asia) |
840 |
870 |
910 |
1030 |
| Sinopec (Yuan/mt delivered) |
Offer |
6000 |
6600 |
7900 |
9000 |
| Settlement |
6600 |
6800 |
8900 |
N/A |
| Imports(kt) |
July |
603.6 |
August |
560.7 |
September |
543.8 |
 |
| Market roundup |
MEG market was volatile with prices rushing up, but tumbling from midweek. The transactions volumes were quite small. In import market, the highest and lowest traded prices were $1220/mt and $1060/mt, while in China domestic market the prices were 9500yuan/mt and 8500yuan/mt.
The traded prices of ship hiked from $1120/mt in early week to $1200/mt. Most traders suspended offering on high buying enthusiasm. In China domestic market, the prices rushed up from 9000yuan/mt to 9350-9400yuan/mt.
After the big jump, MEG market ceased from the sharp uptrend in midweek. More traders showed selling intentions with the offers down quickly in Wednesday afternoon. In USD market, the offers dropped to $1180-1190/mt, but buyers held a wait-and-see attitude. In RMB market, the discussing prices slid to 9000yuan/mt or below.
The decline in MEG prices accelerated in last two days of the week. The talked prices for ship cargoes were pegged at $1100-1110/mt on Thursday, but slipped quickly to $1050/mt; in RMB market, the discussing prices were at 8700-8800yuan/mt, and dropped to 8500yuan/mt. Market confidence was greatly dampened. |
| Inventory |
| MEG Inventory in East China Ports* (unit:10kt) |
| |
Last Week |
This Week |
| Zhangjiagang |
25 |
25 |
| Taicang |
7.5 |
8 |
| Jiangyin |
5 |
5 |
| Ningbo |
12 |
12 |
| Total |
49.5 |
50 |
| MEG Inventory |
Tank: high |
Polyester plant: moderate |
| *statistics available |
| Forecast |
|
The dramatic trend in MEG market has great impact on market sentiment, especially after the commodity futures and stock market slumped. In the short term, MEG market is unlikely to stabilize. However, the strong demand from downstream market still exists, which will continue to support MEG market. The uncertainty in the global capital markets will make MEG market more volatile later. |
source:CCFGroup.com
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