29 October 2013 11:59 [Source: ICIS news]
LONDON (ICIS)--The European monoethylene glycol (MEG) October contract has settled at €985/tonne ($1,368/tonne), sources confirmed on Tuesday, dropping by €53/tonne from September because of softer spot prices.
The settlement, agreed on a free delivered (FD) northwest Europe (NWE) basis, was completed in conjunction with the September settlement, which was finalised this week at €1,038/tonne, rising by €48/tonne from August.
The September increase came as a result of higher MEG spot prices in Europe and Asia, but buyers resisted the increase because it went beyond the ethylene pass-through, hence the delay to complete the settlement.
Meanwhile, a drop in October had been widely expected as spot MEG reversed its upward trend in the past few weeks, dropping to lows not seen since July 2012.
Spot MEG traded last week at €755/tonne CIF (cost insurance and freight) northwest Europe (NWE), down by 15% from a range of €860-910/tonne four weeks earlier.
($1 = €0.72)
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