04 February 2014 15:54 [Source: ICIS news]
LONDON (ICIS)--European buyers and sellers of monoethylene glycol (MEG) remain at an impasse over the January contract settlement in the first week of February but a dual-settlement is being considered, sources said on Tuesday.
Producers lamented not having concluded a settlement last week as January drew to a close and hope the current impasse will be resolved soon.
“I think there will be a double settlement with a rollover for January,” a producer said, adding that a double settlement refers to an agreed final January price with a simultaneous initial price for February.
“First contact [with buyers] should be this week but it is more realistic [that we will] see an agreement next week.”
A buyer said prolonged settlement negotiations are not normal practice but, at the same time, not uncommon.
“We are [also] hoping for a double settlement,” the buyer said.
“[It could happen by] the end of this week but there is no specific timeline… In the meantime, the number we use [for trades should be either] the December [contract] price or an average of the spot price. This is still being negotiated [as well].”
The December contract price was settled at €965/tonne FD (free delivered) northwest Europe (NWE).
Additional reporting by Caroline Murray
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