MEGlobal lowers June MEG ACP nomination by $90/tonne

12 May 2010 09:51  [Source: ICIS news]

SINGAPORE (ICIS news)--MEGlobal has nominated its June monoethylene (MEG) Asian contract price (ACP) $90/tonne (€71/tonne) lower from its May level, a company source said on Wednesday.

“We set our June ACP at $960/tonne CFR (cost and freight) Asia to narrow gaps between current spot prices and also to reflect short-term expectation of supply and demand situation,” the source said.

Supply was expected to remain abundant in June, but demand was expected to shrink as the traditional peak production season for polyester yarn ended in late May, a regional trader said.

Asia MEG spot prices, hence, were under downward pressure. Spot prices fell $105-110/tonne month-on-month to $830-840/tonne CFR China Main Port (CMP) on Wednesday amid bearish sentiment, according to global chemical market intelligence service ICIS pricing.

On 11 May, MEG major Shell Chemical announced its June ACP at $970/tonne CFR Asia .

($1 = €0.79)

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By: Becky Zhang
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