20 August 2010 22:12 [Source: ICIS news]
LONDON (ICIS)--A combination of delayed shipments, fewer imports and good demand was resulting in a tighter European monoethylene glycol (MEG) market and spot prices were climbing, sources said on Friday.
“I have never seen anything like this. The fundamentals are in place what with new capacities on stream, for prices to come down,” a buyer experiencing higher prices commented.
Even suppliers were short and prepared to pay over €700/tonne ($897/tonne) for bulk material due into ?xml:namespace>
These ICIS-assessed prices were up from lows of €630/tonne CIF (cost, insurance and freight) NWE (northwest
This was evident in the spot deals reported this week at up to €715/tonne, with an offer for 2,000 tonnes €10/tonne higher.
“[Traders are] very short because they can’t import Iranian [MEG],” a reseller commented.
Proposed sanctions against
“Shipments have been delayed from August to September. All European producers say they are sold out for September because the regular importers have turned to [them] for September product,” another trader said.
Availability from the
Demand was proving to be high.
Downstream polyethylene terephthalate (PET) producers were experiencing a surge of requirements not only due to the traditional summer high season for bottlers but also from customers speculating on PET prices bottoming out in August.
Requests from the industrial sector were also kicking in.
“Consumption is very, very high. The high season is starting,” one customer said.
The tight market came as a surprise to some players and one acknowledged: “I admit, I was sure numbers would go down. In the meantime I have changed my view”.
($1 = €0.78)
ICIS has launched weekly pricing reports in
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