24 March 2013 20:35 [Source: ICIS news]
SAN ANTONIO, Texas (ICIS)--Prices for US monopropylene glycol (MPG) might fall in the summer as a result of prolonged weak demand in the anti-freeze market because of an unusually slow winter season, a market source said on Sunday.
“Demand has not been so good, and weather was a factor in that. It was very warm for winter up until late January, and it wasn’t until February that colder temperatures and storms kicked in,” said the source on the sidelines of the International Petrochemical Conference (IPC).
As a result of winter arriving late inventories have built up and sellers are going to try and unload that, the source said.
“The economy is showing some movement, but I’m not seeing that MPG demand will improve. If we get to summer and we still have this poor demand, I expect prices will fall,” the source said.
The outlook for the third and fourth quarters, however, is more positive. The source expects MPG will swing back on track, barring any catastrophic events hitting the market. The third and fourth quarters are typically strong periods for the US MPG market.
MPG is used in anti-freeze and functional fluids, unsaturated polyester resins (UPR), cosmetics and personal care products, liquid detergents and dog food.
US MPG producers include Dow Chemical, Huntsman and LyondellBasell.
Hosted by the American Fuel & Petrochemical Manufacturers (AFPM), the IPC continues through Tuesday.
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