MEGlobal dropped its North American benchmark for monoethylene glycol by 4 cents/lb ($88/mt) to 43 cents/lb ($948/mt) for February, a company source said Friday.
The drop in the contract price comes along with factors such as lower spot USG MEG prices, lower Asian prices, cheaper feedstock costs and lower Asian price announcements.
MEGlobal decreased the Asian contract price for February by $80 to $860/mt CFR Asian main ports. Asian contract nominations for Sabic and Shell have not been heard. Sabic reduced prices in January by $50 to $950/mt with Shell dropping $60 to $940/mt.
US spot MEG prices were last assessed Friday at 33 cents/lb FOB USG, down 3 cents from the start of January. US MEG contracts for fiber and PET makers were assessed at 40.3 cents/lb for January based on a weighted formula that applies discounts to announced contract prices. MEGlobal’s posted North American contract price for January was 47 cents/lb ($1,036/mt), while in Asia MEGlobal and Shell announced at $940/mt and Sabic at $950/mt. The formula discounts the North American price by 15% and the ACP average by 5%, with each segment equally weighted, per market feedback.
MEGlobal also dropped its North American benchmark price for diethylene glycol by 4 cents to 64 cents/lb for February.
– Platts.com
