US EG price increase going through - trader

10 April 2008 22:45  [Source: ICIS news]

HOUSTON (ICIS news)--Price hikes of 3 cents/lb ($66/tonne) for US ethylene glycol (EG) were finding acceptance among buyers amid tight supply, a trader said on Thursday.

The price hikes, if fully accepted, would put the EG benchmark at 65 cents/lb. Before the increase, US fibre-grade EG (EGF) in March was 62-64 cents/lb, according to global chemical market intelligence service ICIS pricing.

The EG price increases were proposed for 1 April.

However, above-normal buying in late March - ahead of the proposed increase - slowed demand in early April. That made it initially difficult to determine whether customers were likely to accept the increase, the trader said.

“Orders are up, and it’s obvious now that buyers have accepted the increase,” the trader said, adding that only a few buyers had balked at the price hike.

Added supply from the return to production of SABIC’s Al-Jubail facility in Saudi Arabia is not expected to hit the market until June, since SABIC had not yet returned to optimum rates and was currently refilling its own inventories ahead of sending the product to market.

US EG suppliers include Equistar, Huntsman, Old World, SABIC and Shell.

For more on EG visit ICIS chemical intelligence

By: Gene Lockard
1 713 525 2653

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