Contracts for August are set to move up 2 cpp for August. Between discounts and other formulations August contracts will range from 47-53 cpp, this is an increase of 1.5-2 cpp, after July contracts were ranging from 46-51 cpp.
Contract for August is reported settled at €975, an increase of €90 over July. The rise reflects more or less exactly the €140 increase in the ethylene contract price.
Spot markets were volatile as sellers tried to push values in line with the gains seen in PTA. Unfortunately, while MEG also had support from firm ethylene, its gains were not as strong as PX had been through July. MEG supply has also not been as snug as PTA, especially given the latter’s operating rate cuts in 2H June/1H July. The end result was a quick surge in MEG values to $1020 CFR China based on offers early in the week. Spot then corrected as buyers withdrew from the market and held wait and see positions. Offers fell to $1005-$1010 CFR as of Thursday and held that value going into today. A similar trend was seen in the China market where East China prices jumped early to Rmb 7850, but came off to Rmb 7600 as demand faded, especially in the flood-damaged Northeast and North.