Sep MEG confirmed, initial settlement for Oct at €985/tonne

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)


By: Nel Weddle
+44 20 8652 3214



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

ICIS news FREE TRIAL
Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index