31 August 2012 12:36 [Source: ICIS news]
LONDON (ICIS)--Production at INEOS Oxide’s ethylene glycol plant in Cologne Germany has been halted for planned maintenance, a source at the chemical major confirmed on Friday.
Production at the plant was suspended on 25 August and is expected to restart in mid-September, the source added. The plant has a nameplate monoethylene glycol (MEG) capacity of 150,000 tonnes/year according to ICIS.
The announcement comes at a time when Europe MEG supply is tight. Recent and ongoing production outages and rumours of production outages have caused a run on product in the past few weeks as buyers attempt to ensure supply. Because of low inventory levels, which were reduced to help mitigate the effects of poor macroeconomic conditions, there has been no buffer stock in tanks, sources said.
As a result of the limited availability MEG bulk spot price ideas rose to €960-1000/tonne ($1,200-1,250/tonne) CIF NWE T2 (cost, insurance freight, northwest Europe T2) on Friday, an increase of €50/tonne compared with last week. No deals were done due to an absence of available material, but sentiment is firming
INEOS is registered in Switzerland.
($1 = €0.80)
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