15 November 2010 05:16 [Source: ICIS news]
SINGAPORE (ICIS)--Shell Chemicals has hiked its December monoethylene glycol (MEG) Asian Contract Price (ACP) by $120/tonne (€88/tonne) from its November nomination, a source with the Anglo-Dutch major said on Monday.
“Our December ACP has been proposed at $1,150/tonne CFR (cost and freight) ?xml:namespace>
The price hike, however, was not supported by the current MEG market, said a Zhejiang-based end-user.
MEG spot prices in Asia had a roller coaster ride last week - prices hit 29-month highs of $1,150-1,180/tonne CFR CMP (China Main Port) on Tuesday, but plunged $150-160/tonne to close at $1,000-1,020/tonne CFR CMP on Friday, according to ICIS.
The current weakness was to be expected following recent spectacular gains, said the source from Shell. But in the long run, the Asia MEG values were expected to strengthen as demand continued to grow while supply was steady, the source added.
($1 = €0.73)
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