SABIC's June MEG ACP nomination falls $80/tonne to $970/tonne

13 May 2010 08:45  [Source: ICIS news]

SINGAPORE (ICIS news)--SABIC has lowered its June Asia Contract Price (ACP) nomination for monoethylene glycol (MEG) by $80/tonne (€63/tonne) from its May level, a company source said on Thursday.

"We proposed our June ACP at $970/tonne CFR (cost and freight) Asia to be in line with the current downtrend in MEG spot prices,” the source said.

A Chinese trader said: “The contract price is still far beyond current spot levels.”

Asia MEG prices remained on a downtrend this week amid bearish sentiment due to mounting inventories and the poor macro economic environment in the key China market.

Bids dipped to around $820/tonne CFR CMP (China Main Port) on Thursday, a sharp decrease of around $120/tonne month on month, according to global chemical market intelligence service ICIS pricing.

On 11 May and 12 May, the other two MEG majors - Shell Chemical and MEGlobal - nominated their June ACPs at $970/tonne CFR Asia and $960/tonne CFR Asia respectively.

($1 = €0.79)

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By: Becky Zhang
+65 6780 4359

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