MEGlobal, Shell’s MEG contract offers for Dec out

08 November 2006 10:17  [Source: ICIS news]

SINGAPORE (ICIS news)--Market reaction to MEGlobal and Shell Chemical’s December monoethylene glycol (MEG) contract nominations on Wednesday has been quiet in anticipation of Saudi Arabia petrochemical major Sabic's posting.

“The market is waiting for the nomination by Sabic,” said a Korean trader, on the relative lull.

MEGlobal and Shell Chemicals have respectively nominated their contract prices for December monoethylene glycol (MEG) at $930/tonne and $900/tonne CFR Asia.

This is either a rollover or a $30/tonne decrease from the November number of $930/tonne cost & freight (CFR) Asia.

“Demand from downstream end users in China is picking up in November as reflected by the relatively high operating rates,” said an official from MEGlobal.

Spot prices of MEG have also risen in recent weeks, hitting $835-840/tonne CFR China as of Tuesday evening, compared to around $800/tonne in mid-October.

As at 16:30 Singapore time (08:30 GMT) Wednesday, Sabic had yet to post its December price.

Sabic, which has an annual capacity of 4m tonnes of MEG, is currently the world’s second largest producer.

By: Salmon Aidan Lee
+65 6780 4359

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