UpdateEurope MEG Dec contract at €975/t finds support, buyers unhappy

01 December 2010 13:30  [Source: ICIS news]

VALENCIA, Spain (ICIS)--A second producer and customer have reported having followed the initial monoethylene glycol (MEG) December contract settlement at €975/tonne ($1,266/tonne), up €70/tonne from November, but buyers remain disgruntled with what they consider to be an inflated price, they said on Wednesday.

“I am losing my margin and I am not happy,” a downstream polyethylene terephthalate (PET) producer said.

Most buyers acknowledged that an increase was due because of price hikes in Asia, which influences what happens in Europe, which is a net importer.

“I do not like the number at all… It is not in line with the European spot market, but it is with Asia,” a second customer said. They added that the price should have gone up by €40-50/tonne and not by €70/tonne.

European spot prices were last assessed between €820-850/tonne CIF (cost, insurance and freight) NWE (northwest Europe).

Another buyer said that the settlement came as no surprise but added that “suppliers are cashing out on the market opportunistically”.

Meanwhile, a major supplier of MEG to Europe was still targeting close to €1,000/tonne, according to one of its customers.

“My supplier is very greedy, it wants next to €1,000/tonne. It wants the Asian price plus €80/tonne,” the buyer said.

There was some tightness in the market, according to buyers.

The second settlement has still not been confirmed by a second buyer.

The MEG contract price was agreed on a free delivered (FD) NWE basis.

($1 = €0.77)

For more on MEG and PTA visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Caroline Murray
44208 652 3214

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index