NewsFlashSabic posts lower ACP for Feb MEG

11 January 2008 07:20  [Source: ICIS news]

SINGAPORE (ICIS news)--Saudi Basic Industries Corp (SABIC) has announced its Asian contract price (ACP) for February monoethylene glycol (MEG) as $1,490/tonne CFR (cost & freight) Asia, down $100/tonne from the previous month, a company source said Friday.

The source declined to elaborate on the price reduction, but one of Sabic’s customers in China said that the price drop was “widely expected”, as spot prices had fallen significantly over the past few weeks.

But other market players said that while they were not surprised by the reduction, they were surprised by the $1,490/tonne number, as fellow major MEGlobal had posted its February price lower at $1,460/tonne CFR Asia earlier this week.

Another major, Shell Chemicals, nominated its ACP at $1,500/tonne CFR Asia last week.

Currently, spot prices are around $1,300/tonne CFR China, down sharply from last Friday’s closing levels of $1,400-1,420/tonne CFR due to lacklustre demand.

By: Salmon Aidan Lee
+65 6780 4359

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