10 January 2011 23:47 [Source: ICIS news]
HOUSTON (ICIS)--November US ethylene oxide (EO) prices moved up 6-7 cents/lb ($132-154/tonne, €103-120/tonne) following the dual-month November and December settlements of the ethylene contract, a producer said on Monday.
The increase in the November EO contract followed a gain of 8 cents/lb on the November ethylene contract.
EO contract prices are formula-based and are keyed to ethylene price movement. Therefore, they are not subject to buyer resistance.
For November, contract prices for EO were 47.00-55.50 cents/lb FOB (free on board), as assessed by ICIS. However, there could be a few deals outside that range.
Because the December ethylene contract slid 2.25 cents/lb, the EO contract price for December will likely reflect a loss of about 2.00 cents/lb. EO prices are adjusted in arears of the ethylene contract settlement.
EO is used primarily as a chemical intermediate. The majority of EO is converted to ethylene glycol (EG). It is also used in the making of glycol ethers, ethanolamines, ethoxylates, polyols for polyurethane systems, polyethylene glycols and polyalkylene glycols.
Major US EO producers include BASF, Dow Chemical, Eastman Chemical, Equistar, Huntsman, Shell and Old World.
($1 = €0.78)
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