MEGlobal's July MEG ACP nomination falls by $120/tonne

11 June 2010 06:10  [Source: ICIS news]

SINGAPORE (ICIS news)--MEGlobal has nominated its July monoethylene glycol (MEG) Asian Contract Price (ACP) $120/tonne (€99.6/tonne) lower from its June level to remain in line with falling spot values, a company source said on Friday.

“We have decided our July ACP at $840/tonne CFR (cost and freight) Asia to reflect short-term expectation of supply and demand situation,” the source said.

“Downstream demand was expected to remain lull in July,” a regional market source said, adding that Asia MEG prices were under continued downward pressure because of abundant supply and languid demand.

Discussion levels for Asia MEG spot prices fell to around $715-725/tonne CFR CMP (China main port) on Friday morning, $120/tonne down from spot prices assessed at the same time last month, according to global chemical market intelligence service ICIS pricing.

Earlier on 9 June and 10 June, the other two MEG majors, SABIC  and Shell Chemical had both proposed their July ACP nominations at $850/tonne CFR Asia, down by $120/tonne from their June levels.

($1 = €0.83)

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By: Becky Zhang
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