Corrected: July US MEG, DEG prices mixed - distributor

22 June 2007 23:09  [Source: ICIS news]

Correction:  In the ICIS news story headlined “July US MEG, DEG prices mixed - distributor” dated 18 July 2007, please read in the first paragraph … by 2 cents/lb (44/tonne) for diethylene glycol (DEG), but buyer resistance was expected for a similar increase for mono ethylene glycol (MEG) … instead of … by 2 cents/lb ($44/tonne) for mono ethylene glycol (MEG), but buyer resistance was expected for diethylene glycol (DEG) …. A corrected story follows.  

HOUSTON (ICIS news)--Tight supply could give US producers enough justification to hike prices on 1 July by 2 cents/lb ($44/tonne) for diethylene glycol (DEG), but buyer resistance was expected for a similar increase for mono ethylene glycol (MEG), a distributor said on Monday.

Customers may have no choice but to accept the DEG increases but the MEG market was “fundamentally balanced,” making customer acceptance of the increase more questionable, the distributor said.

Producers sought increases of 3 cents/lb for MEG and DEG on 1 June. That round of price hikes was generally seen as successful.

If the 1 July increases succeed, the new benchmarks for MEG and DEG would be 49 cents/lb and 59 cents/lb, respectively.

Producers include MEGlobal, Equistar, Shell, Huntsman, Old World and DuPont.

By: Gene Lockard
1 713 525 2653

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