February Monoethylene Glycol Price Europe
February Monoethylene Glycol Price
February MEG contract price in Europe agreed at EUR17 per tonne below January
The contract price of monoethylene glycol (MEG) for February in Europe was finally agreed at EUR608 per tonne, which is EUR17 per tonne lower than the level of the previous month, ICIS reported.
The contract price of the MEG for February shipments was agreed on the terms of delivery of FD NWE (with delivery to North-Western Europe).February Monoethylene Glycol Price
A minimum configuration of 2 + 2 producer-consumer is required in order to consider the agreements fully confirmed. The March agreement appeared along with the full agreement for February, but has not yet been confirmed.
The contract price of ethylene in Europe for March deliveries was agreed at the level of EUR920 per tonne, which is EUR50 per tonne lower than the level of the previous month. A drop in ethylene prices was expected, given the decline in oil prices during February.
During the first two months of the year, the cost of MEG production remained stable at a high level, which exerted constant pressure on profitability, so the decrease in production costs in March put pressure on MEG prices.February Monoethylene Glycol Price
MEG spot prices rose in January due to delays in vessels and activity due to their replenishment, and then in February came under pressure, monitoring the level of contract prices.
For European sellers, prices are reaching critical levels, and local producers have little incentive to offer spot prices. Shipping costs from the US are high, but regular ships continue to arrive in Europe.February Monoethylene Glycol Price
MEG along with terephthalic acid (TFA) is one of the main components for the production of polyethylene terephthalate (PET).
According to ScanPlast of Market Report, in Russia the estimated PET consumption in December 2019 decreased by 16% compared to the previous year.
In total, according to the results of 2019, the total estimated material consumption in Russia increased by 1% and amounted to 696.81 thousand tons of PET (690.13 thousand tons in 2018). February Monoethylene Glycol Price
Author: Anna Larionova