02 October 2012 21:35 [Source: ICIS news]
MEDELLIN, Colombia (ICIS)--The ethylene oxide (EO) and ethylene glycol (EG) markets in the US will remain snug following Shell Chemicals’s extended force majeure (FM) at its Geismar plant in Louisiana, a buyer said on Tuesday.
Shell Chemicals informed customers late last week that it was extending an FM for supply of EO and glycols after a malfunction during a turnaround restart, the source said.
According to the source, Shell did not specify how long the FM would last.
The market has been snug since August and is not projected to improve immediately, and there is limited product available for export, sources said.
Consumers said that some producers have announced additional hikes for October.
Spot barge deals were heard in the mid-40s cents/lb in early August and have jumped into the mid-50s cents/lb at the end of September.
Shell said it does not provide details on the operations of individual plants or information on supplies.
Major EG producers in the US include LyondellBasell, Huntsman, MEGlobal, Indorama, SABIC and Shell.
($1 = €0.78)
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