18 October 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--The European ethylene oxide (EO) contract price for October has fallen by €29/tonne, in line with upstream ethylene, market sources confirmed on Friday.
The price represents 82% of the upstream October ethylene contract plus an "adder".
The overwhelming majority of EO contracts are formula-based, and any price movement tend to comprise 80-85% of the change in the ethylene price, with 82% taken as an average for assessment purposes.
Ethylene contracts fell by €35/tonne in October.
Demand is described as a little slower by some sources as a result of lower volumes into the mono ethylene glycol (MEG) sector. Others see offtake as relatively steady however.
MEG spot bulk prices have fallen rapidly this week. Spot truck prices also fell but are lagging behind the drops seen in the bulk market. Buyers are holding off purchasing as they expect numbers to fall again.
Demand from the anti-freeze sector remains slow at present, as it is cheaper to buy the finished product than to purchase MEG and blend it, sources said.
MEG contract prices for September and October have yet to settle.
($1 = €0.74)
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