16 May 2012 05:40 [Source: ICIS news]
SINGAPORE (ICIS)--Saudi petrochemical major SABIC has raised its June monoethylene glycol (MEG) Asia Contract Price (ACP) nomination by $50/tonne (€40/tonne) from a month ago in view of improved supply and demand situation in ?xml:namespace>
“We set our June MEG ACP at $1,200/tonne CFR (cost & freight)
The company has earlier decided to extend the shutdown at its 700,000 tonne/year No 1 unit at Jubail by another month to end-May or early June.
The plant was shut in early April, initially for 10 days of maintenance, but the shutdown was prolonged twice because of mechanical issues.
Total MEG production loss from the two-month shutdown is estimated at around 120,000 tonnes, according to a source close to the company.
“The nomination is higher than we expected,” a major Zhejiang-based polyester maker said.
Uncertainties in the macroeconomic environment and persistently weak polyester demand have been weighing on the Asian MEG market.
Spot MEG prices stood at $960-980/tonne on Tuesday, down by $45-52/tonne from early May, according to ICIS.
($1 = €0.79)
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