Asia MEG rises on talk of SABIC outage
10 August 2007 11:04 [Source: ICIS news]
SINGAPORE (ICIS news)--Monoethylene glycol (MEG) prices have risen after Saudi Basic Industries Corporation (SABIC) said that the subsequent months’allocation would be cut slightly, buyers and sellers said on Friday.
Sources close to the company said that oxygen-related problems had forced the shutdown of Jubail United’s No1 650,000 tonne/year plant.
There was no further information regarding the operations of other MEG plants at the same Al Jubail site.
A spokesman for the company did not respond to queries regarding the outage.
The supposed outage had pushed MEG spot prices higher. Offers at $1,030/tonne CFR (cost & freight)
This is a jump from the $970-980/tonne CFR China seen last Friday, and $990/tonne earlier this week.
Rumours were rife among market participants that the problem was more serious than it appeared to be.
Some of them said an explosion had occurred, while others believed that the company would declare force majuere soon on its MEG supplies due to a shutdown lasting as long as three months.
One Korean trader went as far as to say that force majuere was possible, and more MEG plants at Al Jubail could eventually be affected.
Sabic operates two MEG units under the Jubail United banner, and three joint venture plants with a Japanese consortium led by Mitsubishi Chemical.
The five units’ combined capacity totals almost 2.7m tonnes/year.
Several of Sabic’s biggest customers in
Another source close to the company said that a statement from Sabic is expected on Monday.
By: Staff Reporter
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