01 July 2009 17:11 [Source: ICIS news]
LONDON (ICIS news)--An initial European monoethylene glycol (MEG) July contract price has settled up €55/tonne ($78/tonne) to €575/tonne, a producer and consumer said on Wednesday.
Both parties also agreed to dropping the June MEG contract price by €10/tonne to €520/tonne, in line with the earlier agreement made between the same customer and another producer. Both contracts were done on a free delivered (FD) northwest ?xml:namespace>
“In the end we compromised, taking into account that June was low at €520/tonne. If we [followed this price] we would need a slight top fee for July,” according to the producer.
July’s €575/tonne price covered the increase on upstream ethylene (C2) while taking into consideration the euro/dollar exchange rate, the producer added.
The European market was tight in July as domestic operating rates remained low and imports were scarce, buyers and sellers said.
Several sellers had been pushing for an increase in June over May’s €530/tonne, while customers were seeking a decrease. Once an initial June agreement was concluded at €520/tonne, however, the sell side started looking for a compromise on July pricing.
($1 = €0.71)
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