Europe bulk MEG spot looking firm into April

27 March 2008 21:38  [Source: ICIS news]

HOUSTON (ICIS news)--European bulk spot monoethylene glycol (MEG) prices looked firmer into April, with fewer offers for domestic and import availability, market sources said on Thursday.

“Prices have certainly moved up during March, and offers from Russia are now at higher levels for domestic European product, as well,” a consumer said. “For the time being this means we will stick to contract volumes and maybe take some spot in early May,” said one consumer.

A trader reported the purchase of 3,000 tonnes of Turkish MEG at €730/tonne ($1,153/tonne) CIF (cost, insurance, freight) NWE (northwest Europe) on Thursday, below the majority of current price indications but still €40/tonne higher than spot business done earlier in March.

Most market sources could not identify any single reason for the firmer trend, seeing it more as a combination of fewer seller offers, a stable-to-firm outlook in Asia and upcoming European shutdowns.

Bulk MEG spot levels fell around €200/tonne from the start of 2008 until early March, when the market stabilised.

“I am looking to buy in the next few days and am offering around €740/tonne CIF NWE,” said another consumer.

Sellers were confident that prompt demand would continue to pick up providing buyers accepted the upward price trend likely over the next month.

Major European MEG producers include BASF, INEOS Oxide, Shell, and MEGlobal.

($1 = €0.63)

For more on MEG visit ICIS Chemical Intelligence

By: Edward Cox
+44 20 8652 3214

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