High inventories slow US EG exports to Europe - trader

04 November 2010 22:53  [Source: ICIS news]

HOUSTON (ICIS)--Europe has replenished supplies of ethylene glycol (EG), closing an arbitrage window for US producers, a domestic trader said on Thursday.

“It looks like they just cannot take any more storage there right now,” the trader said.

Earlier, Europe EG prices rose on tight supply, opening an export window.

Increases of up to €179/tonne ($252/tonne) over the September EG contract of €791/tonne FD (free delivered) NWE (northwest Europe) were proposed for the October and November contracts.

In the US, producers have started pushing for an increase of 5 cents/lb, driven by steady domestic demand for antifreeze as well as demand from Europe.

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

($1 = €0.71)

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By: Gene Lockard
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