NewsFlashSABIC hikes July MEG by $20/tonne

13 June 2007 03:38  [Source: ICIS news]

SINGAPORE (ICIS news)-- Monoethylene glycol (MEG) major Saudi Basic Industries Corp (SABIC) hiked its Asian contract price (ACP) for July by $20/tonne, a company official said on Wednesday.

The major’s July ACP was $1,010/tonne CFR (cost and freight) Asia, up from $990/tonne the previous month.

While the official did not give any reason behind the increase, SABIC’s agents said the higher price had come within expectations as spot MEG prices had risen in recent months to as high as $990/tonne CFR China.

“Although prices had fallen slightly to $950/tonne [CFR China] over the past week, we expect prices to still maintain an overall uptrend going into July given the tight supply,” said one of SABIC’s customers in Asia.

On Tuesday, Shell Chemicals posted its July ACP as $990/tonne CFR Asia, while last Friday, MEGlobal nominated $1,020/tonne. Together, the trio supply almost 50% of the world’s MEG.

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Author: Salmon Aidan Lee
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