April contract price MEG Europe
April contract price of MEG in Europe remained at the level of March
MOSCOW- The contract price of monoethylene glycol (MEG) for April in Europe was finally agreed at the level of EUR775 per tonne, which corresponds to the level of the previous month, ICIS reported.
The contract price of the MEG for February shipments was agreed on the terms of delivery FD NWE (with delivery to North-Western Europe).
Thus, on April 25, the contract price for the material was agreed between one buyer and one seller on the European market, along with the negotiation of the March contract price of IEG, and then on April 26, a second agreement was reached by the second buyer and the second seller.April contract price MEG Europe
Thus, the necessary configuration was reached to approve the contract price: confirmation was received from two producers / sellers and two consumers / buyers.
Negotiations on the contract price of MEG both in March and April were very long due to rising production costs, which contrasted with the availability of the material on the market and against downward pressure from the spot market.
Earlier it was noted that at the end of last week the March contract price of MEG in the European market was agreed at EUR15 per tonne higher than February, while the February contract price of MEG in Europe was set at EUR760 per tonne, which is EUR30 per tonne lower than January this year.
MEG along with terephthalic acid (TFA) is one of the main components for the production of polyethylene terephthalate (PET).
According to the ICIS-MRC price review , during April there were no dramatic changes in the Russian PET market. Before the beginning of the season of peak demand for granules and preforms, the market situation is calm. Asian quotes for raw materials and PET declined last week, which has a downward pressure on the cost of Russian material in the near future.
Author: Margarita Volkova