24 June 2010 12:20 [Source: ICIS news]
SINGAPORE (ICIS news)--China's imports of monoethylene glycol (MEG) is expected to fall further in June after sliding 17% month on month to 527,500 tonnes in May amid record high inventory and slow buying, traders said on Thursday.
China's port inventories have been at a record high of around 600,000 tonnes since April, after the country imported over 600,000 tonnes of the material in March and April, a trader said.
Buyers in China would be able to bring in more shipments from abroad only after they had secured storage tanks, he said.
⌠Almost all the tanks are full, he added.
Abundant supply and falling crude values had pushed down MEG prices to $710-720/tonne (┬575-583/tonne) CFR (cost and freight) China Main Port this week, a sharp decrease of $230-240/tonne, or 25%, since early April, according to ICIS data. (Please see graph below)
MEG cargoes from abroad - including those from Canada, US, Korea, and Singapore - slumped 31-44% in May, said a trader who deals with US cargoes.
China imported 42,700 tonnes less cargoes from US and Canada in May, according to a trader.
Production cutbacks in the region also had also partly reduced import volumes of MEG, said another trader.
Major producers in Korea and Singapore were reported to had either shut their plants for maintenance or reduced operating rates due to feedstock issues, he added.