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Cost Forces Asian MEG Makers To Get Closer To Margin Constraints.

2008/7/17 0:00:00 41

The rising cost of raw materials has forced Asian MEG makers closer to the limit of production.

Ethylene prices in July 10th reached $1695 / tonne CFR in Northeast Asia, up 40 dollars / ton over the previous weekend, while MEG rose by only 25 dollars / ton during the same period.

One MEG manufacturer said that if spot prices were still below 1100 US dollars / ton CFR China, they would cut production.

This week, SABIC and Shell chemical daily ACP in August at $1260 / ton CFR major ports in Asia, in order to indicate their spot price.

A MEG manufacturer said: "the pressure of the whole industry chain is very large, and profits are declining.

We have to shift the cost pressure. "

Iran, Marun Petrochemical Industries Co is likely to shut down the cracking plant and the MEG plant for one month.

The closure of ethane cracking and MEG production lines was mainly due to natural gas shortages and technical problems.

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