Tight supply drives April US EG rollovers - producer

29 March 2011 22:58  [Source: ICIS news]

HOUSTON (ICIS)--US ethylene glycol (EG) rollovers for April resulted from tightening supply, a producer said on Tuesday.

Buyers were not immediately available for comment. However, EG supply is expected to begin tightening in April, when the first of a series of cracker turnarounds begins. The turnarounds are expected to last through the second quarter, the producer said.

US Gulf FOB (free on board) March EG contract values were 63-67 cents/lb ($1,389-1,477/tonne, €986-1,049/tonne), as assessed by ICIS. March prices were up about 7 cents/lb from February.

US EG producers typically propose price increases two weeks ahead of the implementation date. When the mid-March deadline for proposing April price increases came and went without anything heard on April pricing, it became apparent that the April proposal would be either a rollover or a price cut.

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

($1 = €0.71)

To learn more about EG visit ICIS chemical intelligence

By: Gene Lockard
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