Corrected: Europe MEG July contract fully confirmed at €1,044/tonne

Correction: In the ICIS story headlined "Europe MEG July contract fully confirmed at €1,044/tonne" dated 8 July 2011, please read in the first paragraph ...up by €29/tonne from June... instead of ...down by €29/tonne from June... A corrected story follows.  

LONDON (ICIS)--The monoethylene glycol (MEG) July contract price has been fully agreed at €1,044/tonne ($1,491/tonne), up by €29/tonne from June, a second buyer and a second producer said on Friday.

“The price reflects…the price increases in Asia and does not take into consideration the [July] ethylene decrease,” the buyer said.

He added that the new contract price does not reflect the fact that there is sufficient availability.

Ethylene settled at €1,090/tonne, down by €95/tonne from June.

Customers had been targeting decreases, rollovers or slight increases, while producers were vying for a figure closer to €1,100/tonne in order to match developments in Asia.

A further strengthening of the US dollar should mean the MEG price settles even higher, another supplier said.

It added that €1,044/tonne is not really attractive.

The initial price was agreed on 1 July and was met with disappointment from both sides of the market. The second settlement was made late on Thursday.

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

($1 = €0.70)