29 August 2008 12:47 [Source: ICIS news]
(adds background from paragraph 3)
LONDON (ICIS news)--A major European monoethylene glycol (MEG) producer said on Friday it had agreed a September contract at €875/tonne ($1,287/tonne), down €75/tonne from August, with a major consumer.
The source said it has also followed the initial August contract at €950/tonne FD (free delivered) NWE (northwest ?xml:namespace>
Immediate confirmation from the consumer was not available.
“MEG is a global commodity and this is why we adjusted the price down, with Asian prices lower," said the seller. "However, it means we see a September contract price in Europe which is well below spot levels."
There has been an unusual delay in the further confirmation of Europe's August contract, with most buyers feeling that an increase was not a fair reflection of market fundamentals as Asian prices fell sharply and suppliers nominated decreases for September.
The market was split as sellers were focused on the record upstream ethylene contract price for the third quarter.
More reaction was expected to follow from other market sources.
($1 = €0.68)
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