16 January 2013 15:45 [Source: ICIS news]
LONDON (ICIS)--European monoethylene glycol (MEG) January contract discussions have reached stalemate with sellers unprepared to follow the initial agreement, which was up by €20/tonne, sources said on Wednesday.
"Nobody has followed the settlement. I don't like the number. It should clearly be closer to €1,100/tonne and really above €1,100/tonne. For February there will be a further increase unless things change," a producer said.
The lack of a follow-up agreement so late in the month has led to talk of a double settlement, whereby January’s €1,068/tonne FD (free delivered) NWE (northwest Europe) would be followed at the same time as a February price is agreed.
"I am not planning a combination contract price, but it could be a way out of the stalemate," a second producer said.
Customers said that €1,068/tonne is broadly in line with expectations, yet they are not actively chasing the number.
A buyer said it did not think the situation would end with a double settlement.
As yet, neither buyers or sellers are prepared to propose a price for February contracts.
"In general I think double settlements leave people in tears," a third producer said.
($1 = €0.75)
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