09 December 2009 23:04 [Source: ICIS news]
HOUSTON (ICIS news)--The likelihood that US ethylene glycol (EG) prices could climb at least 2-3 cents/lb($44-66/tonne, €30-45/tonne) in January was growing amid rising prices in other regions, a trader said on Wednesday.
Monoethylene glycol (MEG) bid/offer prices in Asia recently climbed to nearly 41 cents/lb. The run-up in Asia led to increasing sentiment for a January price increase in US EG prices.
In Europe, the MEG December contract in Europe was on the move, as well, running up €28/tonne to an initial settlement of €660/tonne on Wednesday.
US Gulf EG prices in November were 35-38 cents/lb FOB (free on board), according to global chemical market intelligence service ICIS pricing.
Earlier in December, most US EG buyers and sellers had believed prices would probably roll over in January.
“Rising price sentiment outside the US is making a January increase in domestic EG prices more likely than a rollover,” the trader said, adding that many buyers recently began filling inventory.
Because of the end-of-year tax on inventory, the buyers had been destocking, with plans to restock supply early in 2010.
US EG suppliers include Equistar, Huntsman, MEGlobal, Old World, SABIC and Shell.
($1 = €0.68)
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