MEGlobal hikes September MEG ACP nomination by $90/tonne

14 August 2012 03:41  [Source: ICIS news]

SINGAPORE (ICIS)--MEGlobal has raised its Asian Contract Price (ACP) for September monoethylene glycol (MEG) by $90/tonne (€73/tonne) from August, according to a document obtained by ICIS on Tuesday.

“The September MEG ACP will be $1,130/tonne CFR (cost & freight) Asia, to reflect the short-term supply and demand situation,” the company said in a note to clients.

Asia’s spot MEG were traded at around $1,005-1,017/tonne CFR China Main Port (CMP) on Monday, representing an increase of $115-118/tonne or 13% from a month ago, according to ICIS.

The sharp increase in spot prices was in tandem with surges in crude futures, further boosted by speculative trades, given reports of production issues in the Middle East amid healthier demand from downstream polyester industry, market sources said.

MEGlobal is a joint venture between Dow Chemical and Kuwait’s Petrochemical Industries Co (KPIC).

($1 = €0.81)

By: Becky Zhang
+65 6780 4359

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