Spot Europe truck MEG takes €30/t upturn

04 July 2008 17:35  [Source: ICIS news]

LONDON (ICIS news)--Europe spot monoethylene glycol (MEG) prices moved up sharply this week, as buying interest returned to the market and sellers lifted prices for fresh July business, they said on Friday.

Hikes of €30/tonne ($47/tonne) were reported by several traders, who had lifted offers from the high €700s/tonne FCA (free carrier) NWE (northwest Europe) to the low €800s/tonne FCA NWE over the course of the week.

Prices had been assessed last week between €770-800/tonne FCA Rotterdam T2 (customs duty paid) by global chemical market intelligence service ICIS pricing, having been largely stable during June.

Producers had been more bullish, with offers quoted around €850/tonne FCA NWE, and even up to €870/tonne FCA NWE, although business was not confirmed at these levels.

The MEG market was still waiting for full clarification of the upstream €190/tonne hike in third-quarter ethylene before agreeing to the July MEG contract. June was priced at €880/tonne FD NWE.

Smaller consumers were aware of the cost pressure and some had come back into the market, fearing that prices could move up further, and amid talk that MEG producers could cut rates due to high feedstock costs.

($1 = €0.64)

For more on MEG please visit ICIS chemical intelligence
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By: Edward Cox
+44 20 8652 3214

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