US EG slides under 40 cts/lb Nov benchmark

06 November 2008 15:55  [Source: ICIS news]

HOUSTON (ICIS news)--Selling prices for US ethylene glycol have already dipped below the November benchmark, with offers at the mid-30s cents/lb on a lack of demand amid the flagging economy, traders said on Thursday.

The benchmark - effective 1 November - was set at 40 cents/lb ($882/tonne) FOB (free on board) USG (US Gulf), well under the effective selling price of 55 cents/lb in October, on flagging demand and falling upstream prices.

“A large reseller called to offer me material at 36 cents/lb, only a little above MEGlobal’s November Asian contract price (ACP) of $740/tonne (34 cents/lb),” a trader said.

While domestic EG prices approached the ACP, spot prices in Asia were closing in on record lows at $400/tonne CFR China Main Port (CMP).

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

($1 = €0.77)

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By: Gene Lockard
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