Europe MEG spot price increases by €33/tonne to €968/tonne

05 August 2011 18:04  [Source: ICIS news]

LONDON (ICIS)--A European monoethylene glycol (MEG) bulk spot deal was recorded at €968/tonne ($1,363/tonne), up €33/tonne compared with the previous week’s high, the parties involved said on Friday.

“If you want it you have to pay the price,” the buyer said, echoing comments made by other sources.

While requirements for downstream polyethylene terephthalate (PET) have seen a dip, demand from the antifreeze market is beginning to kick in. Some of this interest is attributed to buyers having held back in expectation of a price fall and nervousness caused by problems at Formosa’s Mailiao complex in Taiwan

“There is a huge demand that is not yet covered,” one trader said.

The continuation of the current strength in Europe will depend on how tight the market really is and what level of demand exists. However, the market may not be as tight as some players suspect.

“Traders are sitting on parcels they bought earlier,” said one supplier.

It remains to be seen whether the bearish global economic environment impacts European MEG prices.

The European MEG price was soaring “while the world was tumbling to its knees,” a buyer added.

Other reported deals include agreements at €945/tonne and €920/tonne CIF (cost, insurance and freight) NWE (North West Europe).

($1 = €0.71)

For more on MEG visit ICIS chemical intelligence
Please visit the complete ICIS plants and projects database

By: Caroline Murray
44208 652 3214

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