June Contract MonoethyleneGlycol Europe - Arhive
The June contract price of MEG in Europe decreased by EUR60 per ton June Contract MonoethyleneGlycol Europe
MOSCOW – The contract price of monoethylene glycol (MEG) for June in Europe was finally agreed at the level of EUR695 per ton, which is EUR60 per ton lower than the previous month, ICIS reported. Contract MonoethyleneGlycol Europe
The contract price of MEG for May shipments was agreed on the terms of delivery FD NWE (with delivery to North-Western Europe).
So, last month the contract price for the material was agreed between one buyer and one seller in the European market at the above level, but then the necessary configuration for approving the contract price was not achieved: confirmation must be received from two producers / sellers and two consumers / buyers. Contract MonoethyleneGlycol Europe
Then on Tuesday evening, July 2, the second buyer and the second seller confirmed the same price. Contract MonoethyleneGlycol Europe
Thus, negotiations on the June contract price of the MEG were extended from June to early July, as the positions on the prices of buyers and sellers were different.
Participants in the European MEG market expected a slight decrease in the contract price of ethylene, given the decline in naphtha quotes in the upstream market. In addition, the large gap between spot and contract levels in Europe contributed to the expected downward price trend in the MEG market.
Earlier it was noted that the May contract price of MEG in the European market was agreed at the level of EUR755 per tonne, which is EUR20 per tonne lower than the level of April.
MEG along with terephthalic acid (TFA) is one of the main components for the production of polyethylene terephthalate (PET). Contract MonoethyleneGlycol Europe
According to the ICIS-MRC Price Review , the cost of PET in the Russian market this month will reach a price bottom. In July, contract prices of Russian producers will reach minimum levels over the past 1.5 years. Asian quotes continue to grow, which will affect the growth of formula prices of Russian factories already for August shipments.