MEGlobal raises July MEG ACP nominations by $100/tonne

14 June 2011 10:27  [Source: ICIS news]

SINGAPORE (ICIS)--MEGlobal has nominated its July monoethylene glycol (MEG) Asian Contract Price (ACP) at $100/tonne (€69/tonne) from its price in June, a company source said on Tuesday.

“We have decided [to nominate] our July ACP at $1,350/tone CFR (cost & freight) Asia partly because of the recent firmer spot prices,” the source said.

The source added that the nomination of the company’s ACP was made in consideration of market fundamentals.

The spot prices of MEG in Asia surged by $141/tonne or 13% month on month to $1,225-1,245/tonne CFR China Main Port (CMP) for the week ended 10 June.

"It's within our expectations. [The price of ] ACP is normally at $100-120/tonne higher than spot prices," a major regional producer said.

The rise in prices is driven by tight spot availability in the region because of Taiwanese major Nan Ya Plastic’s ongoing and impending shutdowns at four of its MEG units. The company’s MEG units have a combined capacity of 1.9m tonnes/year.

($1 = €0.69)

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By: Becky Zhang
+65 6780 4359

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