MEG Market Daily (Jan 7, 2011)

MEG Spot
·Traded price of large volume:8800-8850yuan/mt by cash, ex-tank Zhangjiagang
·Traded prices of offshore cargos:$1130-1135/mt, CFR China L/C 90 days
·MEG offer-take index:2.0

Market review
Today, the market atmosphere weakened and prices declined somehow.

In the morning, domestic MEG market atmosphere weakened with a few enquires from polyester plants. Offers increased and were at 8950-9000yuan/mt while the talking prices might be at around 8900-8950yuan/mt. In import market, offers were at around $1150/mt, mainly for bonded cargos. But buyers showed little intention and some traders bid low. The talking prices might be around $1145/mt.

In the afternoon, offers for MEG in import market increased and were at $1135-1140/mt. Traders showed more intention to sell goods while buyers began to wait and see. As the weekend was coming, the market atmosphere weakened.

Downstream
The sales ratio of polyester filament yarn in Jiangsu and Zhejiang fell down to 70-80%, higher at 100% and lower at 50-60%. In short time, polyester filament yarn market is suppoded to keep consolidating.

Outlook
The market atmosphere weakened somehow with slight decreasing prices. Some traders have intention to sell goods but buyers hold wait-and-see stances. The intention of polyester plants building up stocks should continue to be paid attention to.

$1=CNY6.63