28 September 2007 11:50 [Source: ICIS news]
LONDON (ICIS news)--Spot price increases in the European butyl glycol ether (BG) and butyl di-butyl glycol ether (BDG) markets are now imminent due to the likelihood of upstream fourth-quarter ethylene oxide (EO) hikes, a major producer said on Friday.
Ongoing maintenance at several European EO plants, as well as a reported force majeure at one of BPRP’s Gelsenkirchen, Germany, crackers could lead to quarterly EO hikes on freely negotiated contracts of between €25-30/tonne ($35-42/tonne) FD (free delivered), EO producers said on Thursday.
Downstream glycol ethers producers would look to push these costs through to consumers, according to one major seller.
“This is further justification for price increases in October in a market which is already experiencing strong demand, and in which pricing has been steady for some time,” said the seller.
“September has already been one of out strongest months in terms of demand,” it added.
Other producers have already hinted this week that they were about to make, or had already made, hikes.
One producer said it had already set a minimum sales level which it thought was above that of its competitors.
“We have already made increases and are looking for the rest of the market to catch up,” it said.
Producers have been discussing imminent BG and BDG price increases of between €20-30/tonne.
Glycol ethers are used mainly in the paints and coatings industry.
Other uses include inks, cleaning products, plasticisers and brake fluids.
($1 = €0.71)
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