02 July 2009 12:49 [Source: ICIS news]
LONDON (ICIS news)--After lengthy deliberations, the European monoethylene glycol (MEG) June contract price has been finalised at a €10/tonne ($14/tonne) decrease from May, alongside a €55/tonne increase for July business, buyers and sellers confirmed on Thursday.
“The delay [in settling the June contract price] was causing us problems, and with the holidays coming up we needed to know [where we stand],” a consumer said.
The drop in June, to €520/tonne, which sellers were trying to avoid, and the hefty increase of €55/tonne that followed for July were a compromise, according to the producer side.
The customer countered: “It is not a compromise. But we have to be realistic that after the initial €575/tonne [for July] was done, we won’t find lower.”
He added that the new July price was far above levels in ?xml:namespace>
The list prices for July MEG in Asia ranged from $620-680/tonne CFR (cost and freight) CMP (
At the current price levels, however, European producers were still struggling to create margins, sources agreed.
“With €575/tonne as a [July] contract price…producers have close to zero margin,” according to a reseller.
In addition, imports were scarce, industry sources said. This was causing spot levels to soar from lows of €410/tonne CIF (cost, insurance, freight) NWE (northwest
There were three producers and two customers who agreed to the June contract, two of which from both sides also confirmed the new July price.
The initial July settlement was established on 1 July in conjunction with the June settlement, which was first agreed in early June. Both figures were done on a free delivered (FD) northwest Europe (NWE) basis.
($1 = €0.71)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections