US EG rollover expected for August - reseller

19 July 2011 17:35  [Source: ICIS news]

HOUSTON (ICIS)--US ethylene glycol (EG) producers announced no new price increases in August are likely to attempt a rollover for the month, a reseller said on Tuesday.

EG producers typically propose a price increase two weeks before the increase is scheduled to go into effect. However, no new EG price hikes were heard for August.

“Buyers will push for a drop in prices, but producers will attempt to keep prices flat with July,” the reseller said.

July price increases of 3-5 cents/lb ($66-110/tonne, €47-78/tonne) appear to be succeeding, and industrial grade (EGI) material will likely end up in a range of 60-65 cents/lb FOB (free on board). June EGI prices were 57-62 cents/lb FOB, as assessed by ICIS.

Supply early in July was snug, in part because Formosa Plastics exported its production to its subsidiary Nan Ya Plastics plant in Taiwan. All units were shut down for inspection following a fire in May. Units 1, 2, and 3 have since been restarted.

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

($1 = €0.71)

By: Gene Lockard
1 713 525 2653

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