"There has been no progress. Producers want Eur950/mt FD NWE, but we feel Eur890-895/mt is better for November. We are still at Eur806/mt FD for October," a consumer said.
The source said producers wanted compensation for the initial October CP of Eur806/mt FD NWE agreed by producer Shell, with other producers refusing to follow on the basis that the settlement had been too low.
"The difference between us and them is that they want compensation for the low October number, but we will not implement that. They also say that 50% of the spot price in Europe should be considered for the November CP, but we say 10-15%."
This followed talk from a producer late last week, who said the current bulk spot price, converted to an ECP, was "more like Eur1,000/mt FD" taking into account costs, freight and discount.
Spot prices rose further this week, with the truck market seen as low as Eur890/mt FCA NWE earlier in the week but firming to as high as Eur940/mt FCA by Friday. Bulk offers were also reported at a range of Eur820-860/mt CIF for T2 material, with no trades done.
"There is no [bulk] material around. Everyone expected a lot to arrive in Europe, but it has all been absorbed...Demand is good from the antifreeze sector. Buyers were holding back but now they are forced to buy," a trader said.
In Asia, the market rallied after a brief downturn last week, buoyed by good downstream sentiment and strong crude prices. The CFR China benchmark rose $50/mt or 5.2% from last Friday to be assessed at $1,011/mt CFR China Thursday.
But end-users lamented the sudden spike in MEG prices, saying they preferred to stand on the sidelines for now.
