28 October 2013 13:57 [Source: ICIS news]
LONDON (ICIS)--A second MEG (monoethylene glycol) contract price settlement for September has been agreed at €1,038/tonne ($1,442/tonne), up by €48/tonne from August, thereby confirming the initial settlement made on 24 September, a major consumer said on Monday.
MEG sellers had been aiming for increases of €60-100/tonne due to rising spot MEG prices in Europe and Asia during the summer. However, buyers had been initially dissatisfied by the €48/tonne increase because it went beyond the ethylene pass-through, hence the length of time between the two settlements.
The September agreement was done in conjunction with an initial settlement for October at €985/tonne, which is down €53/tonne. Sources had anticipated a decrease because spot prices have plunged to lows not seen since July 2012.
The settlements are agreed on a free delivered (FD) northwest Europe (NWE) basis.
($1 = €0.72)
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