Exports tighten supply, boost price of US DEG

22 April 2008 00:11  [Source: ICIS news]

HOUSTON (ICIS news)--Price increases of 3-5 cents/lb ($66-110/tonne) for US diethylene glycol (DEG) have been proposed for 1 May and are likely to succeed amid tight supply and increased demand, a trader said on Monday.

DEG is produced during the production of ethylene glycol (EG), and EG has been in tight supply since August 2007 following unplanned outages at various plants.

US DEG supply is also tight because high offshore prices opened the arbitrage window for domestic supply holders, who found deals that worked at prices up to and including 48 cents/lb, the trader said.

“Importers in Europe can buy for about 48 cents/lb, tack on freight charges and still do okay,” the trader said.

Current US DEG prices were 48-52 cents/lb, with the benchmark at 48 cents/lb, according to global chemical market intelligence service ICIS pricing.

DEG spot prices in Europe have risen to the upper-50s and low-60s cents/lb FD (free delivered), NWE (northwest Europe), according to ICIS pricing.

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

For more on DEG visit ICIS chemical intelligence

By: Gene Lockard
1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly