Europe BG prices rise €10-€20/t on Asia demand

16 November 2007 23:59  [Source: ICIS news]

LONDON (ICIS news)--European spot butyl glycol ether (BG) prices firmed again this week, on continuing tightness driven by strong Asian demand and ethylene oxide (EO) being diverted to mono ethylene glycol (MEG) production, buyers and sellers said on Friday.


Prices firmed €10-€20/tonne ($15-$30/tonne) to €1,270-€1,300/tonne FD (free-delivered) NWE (northwest Europe) this week, according to global chemical market intelligence service ICIS pricing.


Demand from Asia has remained formidable due to an outage at the region’s biggest plant, Optimal’s 60,000 tonne/year facility in Malaysia.


The decision of producers to divert EO into mono ethylene glycol due to an MEG price spike this month was also given as a factor in BG scarcity, according to European sellers and distributors.


One producer said this week that it had now opted to produce a more equal amount of MEG and BG, in light of similar profit-making scope in the two markets.


Glycol ethers are used mainly in the paints and coatings industry.


Other uses include inks, cleaning products, plasticisers and brake fluids


($1 = €0.68)

By: Charles Shaw
+44 20 8652 3214

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