06 January 2011 23:35 [Source: ICIS news]
HOUSTON (ICIS)--US supplier MEGlobal announced a rollover for January ethylene glycol (EG) contracts and a price cut of 3 cents/lb ($66/tonne, €50/tonne) on diethylene glycol (DEG), the company said on Thursday.
Buyers were not immediately available for comment. However, it was expected that they would welcome news of the EG rollover and the DEG price reduction.
While the rollover was the result of a balanced market, the DEG price cut was said to reflect weak, off-season demand. However, EG and DEG prices could gain support in the coming weeks based on rising demand in Asia, the producer said.
“We’re watching China right now. Asian demand for DEG and EG is strong, and if that continues, exports from the US could tighten the domestic market,” the producer said.
December US Gulf EG prices were 52-57 cents/lb FOB (free on board), as assessed by ICIS. Meanwhile, December US Gulf DEG was priced at 63-68 cents/lb FOB. ?xml:namespace>
US EG producers include Equistar, Huntsman, MEGlobal, Old World, SABIC and Shell.
($1 = €0.76)
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