New York (Platts)--28Jul2011/453 pm EDT/2053 GMT

MEGlobal dropped its North American mono ethylene glycol price 2 cents/lb ($44/mt) to 65 cents/lb FOB USG, a company source said Thursday.

The decrease was in line with a fall in MEGlobal's Asia Contract Price for August that was nominated $50/mt lower from July at $1,300.

Market participants were uncertain if MEGlobal was going to reduce or keep the benchmark flat as some believed the US was tight enough that a rollover would have been possible in the US.

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There are, however, US contracts that are based on the Asia Contract Price, which other participants believed meant that MEGlobal would keep its North American Benchmark (NAB) in step with in order not to have divergent contract markets.

The NAB has discounts from the benchmark which vary depending on the volumes an end-users buys. Sources have said the discounts range from 10-20%.

Spot MEG railcars were last heard sold at 57-58 cents/lb FOB USG.

--Benjamin Morse, benjamin_morse@platts.com