07 October 2010 14:33 [Source: ICIS news]
LONDON (ICIS)--Two European buyers will follow a rumoured initial European October monoethylene glycol (MEG) contract settlement at €806/tonne ($1,119/tonne), they said on Thursday.
The reported initial settlement, which could not be confirmed with the contract players involved, represents an increase of €15/tonne from the European September MEG settlement of €791/tonne.
“€806, we think it’s okay. It’s what we were expecting,” one of the buyers aiming to follow the settlement said.
The increase was attributed to rising spot prices throughout September, due to tight supply and soaring Asian values.
“The argument [for higher contract prices] is the spot prices in Europe. In the end it’s tight supply,” the buyer said.
MEG contract prices in Europe are agreed on a free delivered (FD) northwest Europe (NWE) basis.
($1 = €0.72)
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