07 September 2012 10:38 [Source: ICIS news]
LONDON (ICIS)--An initial European September monoethylene glycol (MEG) contract has been agreed up by €100/tonne ($127/tonne) at €1,075/tonne, alongside confirmation of the August agreement at €975/tonne, the buyer and seller involved said on Friday.
The settlement was agreed on a free delivered (FD) northwest Europe (NWE) basis.
"We have done an initial September contract at €1,075/tonne in conjunction with confirming the August settlement at €975/tonne. The higher numbers reflect the increased market tightness and stronger Asian values," the buyer said.
"It is good that we have a timely September settlement after the uncertainty of August," the seller said.
Sellers were proposing €1,100/tonne and €1,125/tonne, but customers' targets were more in the region of €1,050-1,060/tonne for September.
European upstream ethylene increased by €125/tonne to €1,300/tonne from August to September and Asian MEG prices have soared. In Europe, which is a net importer, MEG availability is constricted because of production outages locally and in other regions.
($1 = €0.79)
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