19 July 2012 21:22 [Source: ICIS news]
MEDELLIN, Colombia (ICIS)--US ethylene glycol (EG) market players are confused by divergent price direction month on month, buyers said on Thursday.
Producers have nominated price reductions for July.
But contract prices are likely to increase in August as all producers are said to have nominated price hikes for that month.
“EG and diethylene glycol (DEG) remain hard to figure out,” a large trader said. “EG price in China is headed up, where will it go,” the source said.
Many US market players look to the monthly Asian Contract Price (ACP) settlement as a guide of US price direction.
A buyer described the situation as a “tricky market, mainly driven by Asia”.
MEGlobal increased its Asian Contract Price (ACP) for August by $30/tonne (€25/tonne) month on month to $1,040/tonne CFR (cost and freight) Asia, according to last week's ICIS Asian EG report. SABIC and Shell have not proposed their August nominations yet.
Price decrease nominations for EG from at least two producers of 6 cents/lb for July contracts are on the table, sources said.
Meanwhile, price increase nominations of around 2 cents/lb are out in the market for August contracts, buyers and sellers said.
Industrial-grade ethylene glycol (EGI) is assessed at 55-58 cents/lb for June.
($1 = €0.82)
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