10 July 2012 11:34 [Source: ICIS news]
LONDON (ICIS)--An initial European monoethylene glycol (MEG) July contract has been agreed down by €40/tonne at €885/tonne ($1,093/tonne), the buyer and seller involved said on Tuesday.
Buyers and sellers had been sharply divided over price ideas for July contracts, with sellers insisting on a rollover compared with June while buyers targeted below €850/tonne.
Buyers had been targeting a price reduction based on weak demand and the record drop in the upstream ethylene contract price in July – which fell by €170/tonne.
Nevertheless, MEG sellers said that a rollover was justified because of a recovery in Asian demand and poor margins.
“[The settlement was done at €885/tonne because of] a mixture of a number of different elements. The Asian market is picking up, C2 [ethylene] is down, and there’s a weaker euro,” the seller involved in the settlement said.
The settlement was agreed on a free delivered (FD) northwest Europe (NWE) basis.
($1 = €0.81)
Additional reporting by Caroline Murray
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