13 January 2011 22:33 [Source: ICIS news]
HOUSTON (ICIS)--US ethylene glycol (EG) price-hike proposals of 4 cents/lb ($88/tonne, €67/tonne) for February are likely to go through because of steady demand and export opportunities to Europe, a reseller said on Thursday.
Domestic demand of EG was steady, and at levels well above those seen one year ago. However, it was primarily the export opportunities that had producers seeking price increases, the reseller said.
“Sellers are still finding arbitrage opportunities to Europe, and the Asian market could also be an export target in the near future,” the reseller said.
The European market was fundamentally short, and the resulting market imbalance kept prices in the region high enough to attract US supply holders, the reseller added.
US EGI (industrial-grade EG) December prices were 52-57 cents/lb FOB (free on board) US Gulf (USG), as assessed by ICIS.
US EG producers include Equistar, Huntsman, MEGlobal, Old World, SABIC and Shell.
($1 = €0.76)
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