Saudi's SABIC hikes March MEG ACP by $30/tonnes

11 February 2010 04:01  [Source: ICIS news]

SINGAPORE (ICIS news)--Saudi Basic Industries Corp (SABIC) has nominated its March 2010 Asian Contract Price (ACP) for monoethylene glycol (MEG) $30/tonne (€22/tonne) higher than its February values, a company source said on Thursday.

"We have decided our March ACP at $1,050/tonne CFR (cost and freight) Asia," the source said, explaining the company expected a resumed demand from the downstream polyester producers after the Chinese New Year holidays.

However, a Chinese trader said the market could see a downward pressure after holidays due to the high storage tank inventories and the impeding start of China’s Tianjin MEG plant.

The trader said more supplies were expected from Shell Singapore MEG plant when its upstream cracker starts up in March. The new MEG plant, which came on stream in December, was running at relatively low rates due to subdued supply of ethylene, the trader added.

($1 = €0.73)

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By: Becky Zhang
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