MEGlobal nominates January MEG ACP nomination $40/tonne lower

14 December 2011 02:39  [Source: ICIS news]

SINGAPORE (ICIS)--MEGlobal has reduced its Asian contract price (ACP) nomination for January monoethylene glycol (MEG) by $40/tonne (€31/tonne) from its December level because of bearish outlook, a company official said late on Tuesday.

The company nominated its January ACP at $1,210/tonne CFR (cost & freight) Asia in the face of abundant supply and an expected slowdown of demand during the Chinese Lunar New Year holidays on 22-28 January, the official said.

It is the third straight month that MEGlobal lowered its MEG ACP nomination from the year’s high of $1,450/tonne CFR Asia in October.

The price drop was also believed to be a move to narrow its difference between spot price levels, a trader said.

Asia spot MEG prices declined to $1,075-1,080/tonne CFR China Main Port (CMP) on Tuesday, a fall of $50/tonne from the same period last month, according to ICIS.

MEGlobal is a joint venture between the Dow Chemical Company of the US and Kuwait’s Petrochemical Industries Company.

($1 = €0.77)

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By: Becky Zhang
+65 6780 4359

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