Update1st Europe August MEG contract rises €10/t

06 August 2008 17:27  [Source: ICIS news]

LONDON (ICIS news)--An initial European monoethylene glycol (MEG) August contract was agreed up €10/tonne ($15/tonne), a seller and consumer confirmed on Wednesday.

 

The contract was settled on a FD (free delivered) NWE (northwest Europe) basis between a German producer and buyer.

 

“We think it is a fair reflection of the market, given the different pressures. Producers are still suffering from the high ethylene prices but we see that MEG is weak in China, which has opened up the arbitrage window to Europe,” said the producer.

  

Sellers had largely disagreed with the July settlement at €940/tonne FD NWE, up €60/tonne, saying that it did not cover raw material increases.

 

“We thought there was a good argument for a rollover or a decrease in August. But we accept that the €940/tonne July level was not good for sellers and see a €10/tonne August hike as a compromise,” said the buyer.

 

($1 = €0.65)

 

For more on MEG visit ICIS chemical intelligence

To discuss issues facing the chemicals industry visit ICIS connect

 

 

By: Edward Cox
+44 20 8652 3214

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