December US monoethylene glycol contracts will move lower following a decrease in benchmark price announcements by several major producers.
US contracts for fiber and polyethylene terephthalate makers were assessed at 49.25 cents/lb ($1,086/mt) for December based on North American and Asian producer discounts for large-volume buyers. The price represents a 1.5-cent drop from November levels.
Market sources said a decrease was warranted as lower spot pricing in the US Gulf region created a gap between contract and spot levels that needed to be closer. Market talk has Gulf Coast spot prices in the 45-46 cent/lb range.
MEGlobal set its December North American benchmark price at 55 cents/lb ($1,213/mt) for MEG, a 3-cent ($66/mt) decrease from November, a company source said Tuesday.
Indorama's December MEG price remained flat at 62 cents/lb ($1,367/mt), according to a letter sent to customers last month.
Two of the three producers who nominate Asian contract prices also moved lower for December. Shell, MEGlobal and Sabic all nominated prices at $1,200/mt -- a $15/mt decrease for Shell, a $20/mt decrease for MEGlobal and a rollover for Sabic.
Large buyers typically receive discounts of 5-15% off posted prices, according to market sources.