Europe MEG shutdowns set to halt price drop

23 January 2008 16:39  [Source: ICIS news]

LONDON (ICIS news)--Planned monoethylene glycol (MEG) shutdowns could tighten the European market in the first half of 2008, halting downward price pressure, said sellers on Wednesday.

 

“We expect a drop in the February contract price but consumers are still taking maximum contract volumes. I expect European supply will tighten in line with the outages planned,’ said one MEG producer.

 

BASF will shut its 360,000 tonne/year MEG unit in Antwerp, Belgium, for maintenance in April.

 

INEOS Oxide will implement maintenance at its 15,000 tonne/year Lavera unit in late February, with the more significant 220,000 tonne/year ethylene oxide plant also down at the same site.

 

INEOS Oxide will also shut its 150,000 tonne/year Cologne MEG plant in Germany in April and its 340,000 tonne/year Antwerp, Belgium, site in June, again for maintenance.

 

Later in the year, Clariant will shut its 140,000 tonne/year German Gendorf plant for planned work in October/November.

 

Confirmation of any other outages was still pending.

 

MEG prices have recently dropped in Europe, in line with the weaker Asian market, but also because of better domestic availability.

 

MEG prices shot up globally in late 2007 because of worldwide shortages. 

By: Edward Cox
+44 20 8652 3214

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