LONDON (ICIS news)--Spot European monoethylene glycol (MEG) sellers said on Friday they hoped to lift prices in December providing the contract price rose but accepted better supply and slow demand may make this unworkable.
"Sellers might try to push spot levels up but there really is no room for this because of the lack of demand. Many buyers are covered for the first half of December, production is good and export options have gone. I can see prices dropping," said one seller.
Spot truck MEG prices were heard either side of Euro1,100/tonne ($1,641/tonne) FD (free delivered) NWE (northwest Europe), stable over the past week and down from the dramatic highs seen in September and October.
Several buyers said they were holding off, hoping prices would fall again, before looking to acquire more spot material.
Global tightness caused by production issues triggered a sharp upturn in numbers late in the third quarter.
Prices then looked set to ease down, with some sources expecting Euro1,000/tonne FD NWE. A rebound in Asian and US spot prices, however, led to European MEG being exported and offsetting improved domestic production.
Following on from bullish Asian contract price nominations for December, buyers were preparing for another record high contract in Europe, with producers said to be looking for around a Euro100/tonne increase.
Real concerns were again reported from consumers in the fibre industry, who were likely to face a double feedstock increase from MEG and also paraxylene.
($1 = Euro0.67)
"Sellers might try to push spot levels up but there really is no room for this because of the lack of demand. Many buyers are covered for the first half of December, production is good and export options have gone. I can see prices dropping," said one seller.
Spot truck MEG prices were heard either side of Euro1,100/tonne ($1,641/tonne) FD (free delivered) NWE (northwest Europe), stable over the past week and down from the dramatic highs seen in September and October.
Several buyers said they were holding off, hoping prices would fall again, before looking to acquire more spot material.
Global tightness caused by production issues triggered a sharp upturn in numbers late in the third quarter.
Prices then looked set to ease down, with some sources expecting Euro1,000/tonne FD NWE. A rebound in Asian and US spot prices, however, led to European MEG being exported and offsetting improved domestic production.
Following on from bullish Asian contract price nominations for December, buyers were preparing for another record high contract in Europe, with producers said to be looking for around a Euro100/tonne increase.
Real concerns were again reported from consumers in the fibre industry, who were likely to face a double feedstock increase from MEG and also paraxylene.
($1 = Euro0.67)
