NewsFlashNE Asia PG hits 27-mth high

17 March 2008 07:51  [Source: ICIS news]

SINGAPORE (ICIS news)--Industrial grade propylene glycol (PGI) prices in northeast Asia are at their highest in 27 months with last Friday seeing a rise of $40-90/tonne over the previous week on limited supply and a declining US dollar, producers and end-users said on Monday.

Prices reached $1,470-1,540/tonne CFR (cost and freight) NE Asia (northeast Asia) last Friday, according to global chemical market intelligence service ICIS pricing.

Cargoes to China were at the lower end of the range, while exports to Taiwan were at the upper end.

Regional supply was snug as major producers cut back their exports to Asia amid shortages in the US, the sources said.

Planned and unplanned shutdowns had tightened supply in the US, aside from strong demand among the downstream de-icing and antifreeze applications, a producer said.

Asian PG prices were also pushed up to recover revenue losses resulting from the decline in dollar values, the sources added.

Suppliers did not expect prices to soften for the rest of this month and April as the tight supply situation in the US was unlikely to ease in the next few weeks and fresh cargoes would take time to arrive in Asia.

For more on propylene glycol (PG), visit ICIS Chemical Intelligence.

By: Hsin Hun Wan
+65 6780 4359

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