Saudi Arabia’s SABIC cuts April MEG ACP nomination by $60/tonne

Saudi Arabia’s SABIC has decreased its nomination for April monoethylene glycol (MEG) Asian Contract Price (ACP) to $1,120/tonne, $60/tonne lower than March’s level, a company source said on Monday.

The ACP nomination price is on a CFR (cost & freight) Asia basis.

Meanwhile, global producer MEGlobal has announced its ACP for April at $1,100/tonne, $80/tonne lower than March’s level, while Shell has yet to announce its ACP nomination.

On 14 March, spot MEG discussions were at $906-918/tonne CFR CMP (China Main Port), down by $25-26/tonne by the previous week, according to ICIS data.

Expectations for the MEG market outlook are bearish, because of the high inventories in east China’s tanks and in the downstream polyester sector, market sources said.