US EG 4-cent Feb hikes likely to succeed - reseller

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)

For more on EG visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect 

By: Gene Lockard
1 713 525 2653

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly