SABIC lowers July MEG ACP nomination by $120/tonne

09 June 2010 05:03  [Source: ICIS news]

SINGAPORE (ICIS news)--Saudi Basic Industries Corp (SABIC) has reduced its July Asia Contract Price (ACP) nomination for monoethylene glycol (MEG) by $120/tonne (€101/tonne) from its June level, a company source said on Wednesday.

“We have decided our July ACP at $850/tonne CFR (cost and freight) Asia to reflect more the current spot market prices,” the source said.

Asian MEG spot prices dived to eight-month low of $700/tonne CFR CMP (China Main Port) this week after a steep fall in crude oil values, according to global chemical market intelligence service ICIS pricing.

“We are not in a rush to match current spot levels as this would further upset the market,” the source added.

“We’re starting to negotiate with SABIC for some adjustments on the contract formula, as it is due soon,” a Chinese end-user said.

Two MEG majors – Shell Chemical and MEGlobal - have yet to announce their July ACPs. Their June nominations were at $970/tonne CFR Asia and $960/tonne CFR Asia respectively.

($1 = €0.84)

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By: Becky Zhang
+65 6780 4359

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