US EG, DEG October contracts surge amid a tight market
26 October 2012 20:50 [Source: ICIS news]
MEDELLIN, Colombia (ICIS)--US industrial-grade ethylene glycol (EGI) contract values surged for October by 5 cents/lb ($110/tonne, €85/tonne) as the market is tight, sources said on Friday.
October contract values for EGI were assessed higher at 62-65 cents/lb.
Market tightness was not projected to lessen immediately and there was limited product available as a result of a raft of production issues in the region, sources said.
Consumers said that some producers have announced an additional hikes for November pricing.
US fibre-grade ethylene glycol (EGF) export contract values were also assessed higher for November as the Asian Contract Price (ACP) rose.
The EGF export contract price is derived from Asian contract prices minus current estimated freight rates.
Contract values for EGF were assessed at 54.66-55.57 cents/lb for November, up by 1.59 cents on the low end of the price range and by 0.69 cents/lb on the high end.
The freight rate used for the EGF EXPO (export) range was $65/tonne.
Diethylene glycol (DEG) pricing for October contracts also moved up by 5 cents/lb, amid a snug market and recent production problems, which have exacerbated the supply situation.
Contract values for DEG were assessed higher at 64-68 cents/lb. The DEG spot market remains limited because of depleted inventories.
Triethylene glycol (TEG) contract values for October were assessed higher by 10 cents/lb as the supply scenario is described as extremely tight, bringing the range to 96-99 cents/lb.
The TEG market has been described as “all Hades breaking loose,” a source said.
Looking to November contracts, hikes are on the table to add an additional 10 cents/lb for the month.
Major EG producers in the US include LyondellBasell, Huntsman, MEGlobal, Indorama, SABIC and Shell.
($1 = €0.77)By: Leela Landress+1 713 525 2653
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