24 September 2013 09:34 [Source: ICIS news]
LONDON (ICIS)--An initial Europe September monoethylene glycol (MEG) settlement has been agreed at €1,038/tonne ($1,403/tonne), a €48/tonne increase from August, the buyer and seller involved confirmed on Tuesday.
September contract negotiations have been protracted. Sellers had been aiming for increases of €60-100/tonne due to rising spot MEG prices in Europe and Asia. Buyers, however, were aiming to limit any cost increase to the upstream ethylene pass-through. The European ethylene contract price rose by €50/tonne in September versus August.
“Asia and European spot markets are strong. It was a compromise in the end. In the end it should have been even higher,” the producer involved said.
The settlement was agreed on a free delivered (FD) northwest Europe (NWE) basis.
($1 = €0.74)
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