04 April 2013 21:08 [Source: ICIS news]
(Adds dropped word "we" in paragraph 7)
LONDON (ICIS)--European monoethylene glycol (MEG) contract price discussions are under way but are proving to be slow and a decrease is widely expected for April, sources said on Thursday.
"The hope for an early settlement, we have to say goodbye to that because we are already in first week of April," a producer said, adding that there had been very little discussion.
Sellers acknowledge that the price will go down but are keen to maintain some margin.
"A chunk of the Asian price drop in March was included in the March European contract price. It was agreed…very late in the month. Some [downward] correction is still needed," a second supplier said.
Buyers are targeting drops of up to €60/tonne ($77/tonne), although €1,020-1,040/tonne was also mentioned as a possible realistic outcome.
"Europe is not really long in glycol. I believe number we will be lucky at €1,010-1,020/tonne if not €1,030/tonne," according to a buyer.
March MEG was agreed at €1,070/tonne FD (free delivered) NWE (northwest Europe).
($1 = €0.78)
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