09 December 2009 10:38 [Source: ICIS news]
LONDON (ICIS news)--An initial European December monoethylene glycol (MEG) contract price has been agreed at €660/tonne ($971/tonne), up €28/tonne from November, due to soaring prices in Asia, a buyer and seller confirmed on Wednesday.
The initial contract settlement was agreed late on Tuesday at €660/tonne FD (free delivered) NWE (northwest ?xml:namespace>
“[We agreed at €660/tonne] because of the crazy situation in
The seller agreed that Asian prices were the main cause of the increase in the European December contract, but it said that it had been already targeting a figure of around €660/tonne at the end of November, when prices in
Soaring spot prices in Asia were attracting imports from the
Another customer said it disagreed with the initial settlement of €660/tonne and with the logic behind the increase.
“It is very high from our expectations. [We were looking for] €640/tonne to pass on the ethylene price. European producers are cashing in on the Asian market,” said the customer.
The December ethylene contract went up by €7/tonne from November to €840/tonne FD NWE. As a result, MEG spot prices in
An offer for December was heard at €550/tonne CIF (cost, insurance, freight)
This was up from the low-to-mid-€500s/tonne seen in early December, according to global chemical market intelligence service ICIS pricing.
Further confirmation from other market sources was pending.
($1 = €0.68)
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