14 September 2011 12:40 [Source: ICIS news]
LONDON (ICIS)--The European monoethylene glycol (MEG) market is still undecided about which of the two initial September contract settlements to follow, sources said on Wednesday.
“I think in the case of doubt the benefit should go to the customer, not the supplier,” a contract customer said.
He added that €1,105/tonne ($1,514/tonne), the lower of the two numbers, would be preferable to the €1,110/tonne, as a €57/tonne increase from August is already significant.
The market has two first settlements that were concluded on 1 September.
“I would assume that in the end one [of the contracts] will be confirmed,” said a producer.
There were suggestions that if four other parties were to agree a figure in the middle of the two existing contract agreements, the matter would be resolved.
However, a second customer said this scenario was unlikely.
A third customer has proposed €1,105/tonne to its supplier, who has rejected it.
The August contract at €1,048/tonne was agreed at the same time as the initial September prices were announced.
Discussions about September continue.
The initial contracts were agreed on a free delivered (FD) northwest Europe (NWE) basis.
($1 = €0.73)
For more on MEG, visit ICIS chemical intelligence
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