US glycol ethers poised for higher prices

15 June 2007 19:27  [Source: ICIS news]

By Carolyn Green

HOUSTON (ICIS news)--Upward price pressure continued to build in the US for glycol ethers, sources said on Friday.
Producers issued 4 cents/lb price increase initiatives for July on the heels of the recently concluded June settlement for ethylene-derived (E-series) and propylene-derived (P-series) at plus 3 cents/lb ($66/tonne),

Producers were gaining support to lift E and P series prices on rising energy and raw material costs, sources said.

E and P series June prices were firm at 86-113 cents/lb DEL (delivered) to distributors and before industry discounts, according to global chemical market intelligence service ICIS pricing.

“Strong supply/demand fundamentals coupled with sustained high raw material costs make this increase a necessity, a Dow Chemical spokesman said earlier in the week.

Consumers and distributors said they were trying to cope with higher price expectations but understood the producers’ situation.

In upstream markets, n-butanol (NBA) producers were seeking an increase of 5 cents/lb in July. If successful, this hike would follow increases totalling 8 cents/lb during the second quarter. June NBA contract prices were in the mid-to-upper 80 cents/lb range DEL.

MEGlobal, announced plans to seek a 2 cents/lb increase on diethylene glycol (DEG) and mono ethylene glycol (MEG) beginning 1 July, largely on tight supply. MEG market prices were firm at 45-49 cents/lb FOB (free on board) and DEG at 56-58 cents/lb FOB.

Mono propylene glycol (MPG) producers will 4 cents/lb increases on 1 July, sources said. One large-volume MPG customer said producers would likely agree to 2 cents of the proposed 4 cents/lb increase. June MPG values were firm in the 80s cents/lb FOB.

Glycol ethers producers include Dow, Eastman, Lyondell and Shell.

By: Carolyn Green
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