Spot Asia MEG under $700/t as majors offer $900/t

15 October 2008 08:09  [Source: ICIS news]

SINGAPORE (ICIS news)--Asian spot prices for monoethylene glycol (MEG) continue to weaken towards $660/tonne, despite the much higher contract proposals for November by leading producers, market players said on Wednesday.

Due to weak demand and a glut among some key traders, spot prices continued to fall to $660-670/tonne CFR (cost and freight) China, from last week’s values around $710-720/tonne.

Last Friday, MEGlobal and SABIC proposed their November price as $900/tonne CFR Asia, $100-120/tonne lower than their October nominations.

“The contract nominations seemed unrealistic for now, as spot prices are already so low, but we need to also look at feedstock costs and why producers are insisting on these numbers,” said a source with Nan Ya Plastics of Taiwan.

Earlier, Shell Chemicals proposed selling its November MEG at $950/tonne CFR Asia, down $70/tonne from its October number.

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By: Salmon Aidan Lee
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