China chemical markets to stay weak during Shanghai import expo

Nov. 07, 2018

China’s domestic chemical markets may stay soft this week after a heavy slump despite restrictions in production and logistics during a major import expo in Shanghai.

 

The price downtrend since October might not be reversed given volatile global political and economic environment, the stronger US dollar and falling crude oil values.

Among actively traded petrochemicals, monoethylene glycol (MEG) and styrene monomer (SM) had plumbed to new lows last week and their prices are expected to continue falling.

On 5 November, MEG prices in east China were at yuan (CNY) 6,650-6,710/tonne, down by around 10% from early October, while SM prices in east China were at CNY9,450-9,500/tonne, down by 21% over the same period.