NewsFlashFirst Europe July MEG up €22/tonne

28 June 2007 13:30  [Source: ICIS news]

LONDON (ICIS news)--A first July monoethylene glycol contract (MEG) for Europe has been agreed at €842/tonne ($1,138/tonne) between a producer and a consumer on Thursday afternoon.

 

The number, agreed on a FD (free delivered) NWE Europe (northwest Europe) basis, represented a €22/tonne increase on June settlements.

 

The contract was confirmed between a major German producer and a fibre based producer.

 

The seller said it had hoped to achieve a greater increase, which was justified by very good derivative demand and expected tighter supply in July.

 

The buyer accepted that product was limited and said it was satisfied with the deal.

 

Earlier on Thursday, offers for the July contract were heard at €850/tonne FD NWE, with a bid at €835/tonne FD NWE.

 

Major MEG producers and buyers in Europe include BASF, Clariant, Shell, INEOS, Diolen Invista and Eastman.

 

($1 = €0.74)

 

By: Edward Cox
+44 20 8652 3214

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