NPRA '08: US EG players mull Al-Jubail effect

31 March 2008 22:44  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS news)--US ethylene glycol (EG) buyers and producers are at odds over what effect a return to normal operating rates at SABIC's Al-Jubail facility will have on market prices, a trader said on Tuesday.

 

"Most consumers are hoping SABIC will be up to speed at their Al-Jubail facility soon, sending a glut of gas into the market and sending prices down," a trader said. "No one wants to be long on supply when that happens."

 

Producers, meanwhile, said although the additional supply from SABIC's facility could erode upward price sentiment, it was unlikely that the market would be inundated with enough new product to weaken existing prices.

 

"We think they're overestimating the amount of product that's been off the market due to problems at SABIC's facility," a producer said.

 

The buyers and sellers were speaking on the sidelines of the National Petrochemical & Refiners Association (NPRA) meeting in San Antonio, Texas. The meeting began on Sunday and runs through Tuesday.

 

US fibre-grade EG (EGF) prices are currently 62-64 cents/lb, according to data from global chemical market intelligence service ICIS pricing.

  

 For more on SABIC's Al-Jubail plant, visit ICIS plants and projects and for more on EG visit ICIS chemical intelligence

 

By: Gene Lockard
1 713 525 2653

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