27 September 2013 16:52 [Source: ICIS news]
LONDON (ICIS)--Despite it being the end of the month, the European monoethylene glycol (MEG) September contract price has still not been finalised, sources said on Friday.
Regarding the initial figure of €1,038/tonne ($1,403/tonne) concluded on 24 September, a seller said "the number is far from where we were looking for".
A second seller said it was "ridiculous" and in no way compensates for the significant increases in European and Asian spot prices.
Sellers had been aiming for increases of €60-100/tonne due to rising spot MEG prices in Europe and Asia during the summer.
The €48/tonne increase from August goes beyond the ethylene pass-through so buyers are also dissatisfied with the number.
"It is €15-20/tonne more than what it should be. €1,020/tonne should be the number," stated a buyer from the polyethylene terephthalate (PET) industry.
The delay in confirming the initial agreement has led to speculation over a possible dual agreement, whereby the September price is confirmed alongside an initial October price. This is not a popular method.
"We are of the opinion that…it's time to close [Septevmber] and open a different chapter," the first seller said.
Meanwhile, the October ethylene contract price was agreed at a €35/tonne decrease to September, and MEG spot prices are also under downward pressure for the end of September and October deliveries.
($1 = €0.74)
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