US MPG buyers to resist proposed 5-cent/lb July hikes

03 June 2009 23:03  [Source: ICIS news]

(ICIS news)--Buyers plan to resist proposed 5-cent/lb ($110/tonne, €77/tonne) price increases for US monopropylene glycol (MPG), effective on 1 July, a buyer said on Wednesday.

“We will not allow them to increase margins in glycol. That much I can promise you,” the buyer said.

MPG producers had already proposed 4-cent/lb price increases for implementation on 1 June.

The June and July increases were necessary to cover the rise in feedstock propylene costs, a producer said.

US pharmacopeia (USP) grade MPG in June was said to trade from the mid to high 70s cents/lb to the high 80s cents/lb FOB (free on board) east of the Rockies, before discounting.

US MPG producers include Arch Chemicals, Dow Chemical, Huntsman and LyondellBasell.

($1 = €0.70)

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By: Gene Lockard
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