01 November 2010 22:55 [Source: ICIS news]
HOUSTON (ICIS)--A US monopropylene glycol (MPG) producer said on Monday that it plans to push through a rollover for November amid tight supply, even if it leads to lower sales.
Buyers were not immediately available for comment. However, they were expected to mount opposition to the rollover, since MPG values typically fall in the fourth quarter.
The rollover was necessary because of tight supply following recent upstream production issues, the producer said. With feedstock propylene oxide (PO) tight, it was difficult to source enough product to produce MPG during the outage.
“We’re down on inventory, so we plan to roll prices over even if it costs us a few sales,” the producer said, adding that there had been no drop in demand in recent weeks.
US Gulf MPG prices for October were 88.00-95.50 cents/lb ($1,940-2,105/tonne, €1,397-1,516/tonne FOB (free on board), as assessed by ICIS.
US MPG producers include Arch Chemicals, Dow Chemical, Huntsman and LyondellBasell.
($1 = €0.72)
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