23 August 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European monoethylene glycol spot truck price rose by €20-30/tonne because of tight supply, buyers and sellers confirmed on Friday.
Prices in Europe are now at their highest point since 26 October 2012.
At the beginning of the week, spot truck was being purchased at €920/tonne ($1,227/tonne) FCA (free carrier) NWE (northwest Europe, but numbers steadily rose and by Friday truck material was not available for below €950/tonne, with €970/tonne regularly heard.
Price ideas of up to €980/tonne were mentioned, but not widely confirmed.
“People misjudged August production and now it's tight,” a trader said.
The MEG market is tight because producers and consumers misjudged demand in August. Stockpiles have been run down and with few ships due to arive from overseas, availability is expected to remain low for the next few weeks.
“[for overseas cargoes] you're talking about arrival time in September, of course availability wise there will not be much change,” another trader said.
Demand has been stronger than expected, predominantly because the delayed start to the downstream PET bottling season because of a protracted winter, has meant that bottle production has continued throughout August, when it would traditionally end.
($1 = €0.75)
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