26 April 2013 23:34 [Source: ICIS news]
NEW YORK (ICIS)--At least two producers have announced increases in their ethylene glycol (EG) US benchmark prices, effective 1 May, but the market is doubtful that these increases will go through, sources said on Friday.
MEGlobal and Indorama both announced 2-cent/lb ($44/tonne, €34/tonne) benchmark increases for monoethylene glycol (MEG), effective 1 May.
MEGlobal also announced a 1 cent/lb increase for its diethylene glycol (DEG) benchmark, while Indorama announced a 2 cent/lb increase for its DEG, both effective 1 May.
Some buyers are doubtful that the increases will go through, especially if other producers do not follow suit, namely Shell. Shell did not comment on whether or not it made a May price announcement.
The benchmark price applies to railcar orders, or orders of roughly 200,000 lbs (90 tonnes). Large customers who buy in barges, or approximately 3m lbs (1,360 tonnes) per barge or more generally receive discounts off the benchmark price.
($1 = €0.77)
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