31 October 2011 16:48 [Source: ICIS news]
BOGOTA (ICIS)--After rising for much of the summer, US ethylene glycol (EG) prices have begun to slide as demand for antifreeze and de-icers has weakened from last year, market participants said on Monday.
“Overall demand in the market is mediocre,” a large buyer said. “Demand is definitely weaker than last year.”
EG contract pricing in the US has begun to drop as seasonal downstream demand for antifreeze softened after the end of the summer driving season and demand in the winter de-icing sector is weaker than last year.
At least one US producer has announced price decreases on EG of 6 cents/lb ($132/tonne €94/tonne) for 1 November.
US industrial-grade EG material for October was 61-66 cents/lb FOB (free on board), as assessed by ICIS.
“Antifreeze demand for us generally runs through the end of August,” said an antifreeze blender. “This year demand was dead by 1 August, one month early.”
Contract pricing for November is expected to drop about 6 cents/lb and values will likely bottom out in December and stabilise into the first quarter of 2012, buyers and blenders said.
Major US EG suppliers include Huntsman, LyondellBasell, MEGlobal, Old World, SABIC, and Shell.
($1 = €0.71)
For more on EG visit ICIS chemical intelligence
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