09 April 2009 16:40 [Source: ICIS news]
LONDON (ICIS news)--European March and April mono ethylene glycol (MEG) contracts have settled up €15/tonne ($20/tonne) and €22/tonne respectively from February, a producer and consumer said on Thursday.
The March price was agreed at €495/tonne FD (free delivered) NWE (northwest Europe) and April at €502/tonne, they said. February was settled at €480/tonne on the same basis.
“We were unhappy with €495/tonne for March, but thought it worthwhile to create a compromise which suits the market overall. The market needs clarity,” the producer said.
The producer, along with another major seller, had previously refused to commit to a March price that was below €500/tonne. Sellers had recently proposed €510-515/tonne, but customers rejected this notion and discussions reached stalemate.
The first March agreement at €530/tonne remained applicable for the two players involved despite the existence of a lower number, according to the customer recently. It was unclear whether this would be amended now that the €495/tonne had been followed.
April's agreement of €502/tonne was the first and was yet to be followed by other market players. The price reflected the tight situation in Europe and developments in ?xml:namespace>
Customers had been looking for €470-480/tonne “or a bit more because the Asian price is up” but sellers were not prepared to back down from offers above €500/tonne.
($1 = €0.76)
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