Initial Europe September MEG contract settles up by €36/tonne

02 September 2010 10:03  [Source: ICIS news]

LONDON (ICIS)--An initial European September monoethylene glycol (MEG) contract price has been agreed at €791/tonne ($1,014/tonne), up €36/tonne from August, the two parties involved said on Thursday.

"I would have liked to have had a higher number...I was hoping to have an eight in front," the producer said.

While €791/tonne was a compromise, it was important to get back on track with settling at the beginning of the month, it added.

"This price is reasonable for Europe because it more or less represents the Asian price with some additional margin for the European producers," the customer commented.

Both sides agreed that the market was tight, but the customer specified that this was evident only in the spot market.

The contract was settled on a free delivered (FD) northwest Europe (NWE) basis.

($1 = €0.78)

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By: Caroline Murray
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