09 November 2010 23:36 [Source: ICIS news]
HOUSTON (ICIS)--US ethylene oxide (EO) formula-based prices climbed 3 cents/lb in October following a 3.75 cent/lb ($83/tonne, €60/tonne) increase in the October ethylene contract, a producer said on Tuesday.
The increase would result in October EO prices of 41.00-48.50 cents/lb FOB (free on board), as assessed by ICIS.
Buyers were not immediately available for comment. However, because the prices are formula-based and reflect the rise in production costs associated with higher feedstock ethylene prices, it was expected that the increase would be successful.
Prices outside that range were still possible due to market sentiment, a seller said.
Demand for EO, which is used primarily in the production of ethylene glycol (EG), was steady amid strong antifreeze sales.
However, EO supply was snug, resulting from unplanned cracker outages late in the third quarter.
US EG suppliers include Equistar, Huntsman, MEGlobal, Old World, SABIC and Shell.
($1 = €0.72)
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