01 June 2012 16:52 [Source: ICIS news]
MEDELLIN, Colombia (ICIS)--US ethylene glycol (EG) contract pricing is expected to increase in June as US producers are firm on price increase nominations for the month, sellers said on Friday.
Ongoing maintenance work has tightened the supply scenario, offsetting sluggish demand, buyers and sellers said.
Price hikes for EG from five producers of 2-3 cents/lb ($44-66/tonne, €36-53/tonne) for June contracts are on the table.
Despite the crude oil price correction over the last two weeks, prices seem to be holding, indicating snugness on turnarounds, market players said.
Antifreeze and coolant blenders have not yet returned to the market, but are expected to start buying in the coming weeks.
MEGlobal shut its three monoethylene glycol (MEG) in Alberta in Canada for six weeks of maintenance in the second quarter. The work began at the end of April.
MEGlobal has two plants at Prentiss, with nameplate capacities of 320,000 tonnes/year and 278,000 tonnes/year; and a third plant at Fort Saskatchewan with a 380,000 tonne/year capacity, according to the company’s website.
MEGlobal plans to replace the reactors of the biggest plant in Fort Saskatchewan that will slightly increase its glycol production.
Major EG producers in the US include LyondellBasell, Huntsman, MEGlobal, Indorama, SABIC and Shell.
($1 = €0.81)
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