20000327

MEG prices up 5.6 percent

RECORDER REPORT

KARACHI: MEG prices currently at $560 per tonne have increased 5.6 percent since the beginning of last month. MEG prices are expected to continue their upward trend, though at a slower pace, before levelling off in the second half of 2000. New MEG capacity is expected to come online during the second quarter of 2000, which is likely to cap the upward price movement.

The local PSF demand for the fibre continues to be strong and the industry is likely to remain in the deficit zone until the planned expansion come on line in the beginning of 2002. Consequently tight supply, increasing raw material cost and strengthening international PSF prices, raises hope of a subsequent upward adjustment in local PSF prices.