Saudi’s SABIC raises September MEG ACP offer by $30/tonne

10 August 2010 08:51  [Source: ICIS news]

SINGAPORE (ICIS)--Saudi Basic Industries Corp (SABIC) has nominated a $30/tonne (€23/tonne) increase in its Asia Contract Price (ACP) for September monoethylene glycol (MEG) from the previous month's levels, a company source said on Tuesday.

“We have decided our September ACP at $880/tonne CFR (cost and freight) Asia due to expectations of higher demand in September,” said the source.

Demand in China was expected to pick up further in September, when restrictions in electricity usage in Zhejiang province was lifted, the source said.

Zhejiang is the country’s production hub for textiles, in which MEG has a strong downstream application.

The recent spikes in MEG spot prices, mainly driven by bullish sentiment also helped the higher nomination, the source said.

MEGlobal had earlier announced its September ACP nomination at $870/tonne CFR Asia.

($1 = €0.76)

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By: Becky Zhang
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