March US EG 7 cent/lb price hikes succeed - trader

21 March 2011 17:50  [Source: ICIS news]

HOUSTON (ICIS)--US ethylene glycol (EG) 7-cent/lb ($154/tonne, €108/tonne) price-hike proposals for March went through amid snug supply and strong demand, a trader said on Monday.

EG supply remained limited following recent export opportunities to Europe, and domestic producers were said to be running plants at optimum rates to rebuild inventory ahead of upcoming turnarounds.

While buying interest was off from winter highs following a drop in antifreeze demand, a rise in polyester production for fabric and rising polyethylene terephthalate (PET) production were picking up the slack, the trader said.

“For a few days now, I’ve had deals go through with all the increases for March applied,” the trader noted.

The increase sent March prices to 63-67 cents/lb FOB US Gulf (USG), as assessed by ICIS.

US EG producers include LyondellBasell, Huntsman, MEGlobal, Old World, SABIC and Shell.

($1 = €0.70)

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