15 August 2013 21:35 [Source: ICIS news]
NEW YORK (ICIS)--MEGlobal has announced 3 cent/lb ($66/tonne, €50/tonne) increases for its North American monoethylene glycol (MEG) and diethylene glycol (DEG) benchmarks effective 1 September, a company official said on Thursday.
The company’s North American MEG benchmark will move from 57 cents/lb free on board (FOB) in August to 60 cents/lb FOB in September. Its North American DEG benchmark will go from 54 cents/lb FOB in August to 57 cents/lb FOB in September.
Spot prices are thought to have moved up a great deal more on the back of Huntsman’s force majeure earlier this month on its Port Neches plant in Texas.
“US prices moved to Asia arbitrage and then some as Huntsman declared FM on MEG,” the MEGlobal official said.
DEG is thought to be in similar shape as MEG on this force majeure, according to the official.
Other market sources speculated that US MEG spot prices would spike temporarily on the Huntsman outage. One source said he thinks the increase could be in the 10-12 cent/lb level, but sources overall concurred that they had not yet seen spot prices move.
Sources think a spike will happen but said they will have to wait and see how much spot prices will jump.
Huntsman declared the force majeure on 8 August when a routine inspection showed unexpected signs of stress cracking in one of the ethylene oxide (EO) units at the Port Neches plant. Huntsman shut down the unit as a safety precaution, which effectively stopped MEG production at the MEG unit integrated with the affected EO unit.
Huntsman expects to bring both the EO and MEG units back on line before the end of August, a company official said.
($1 = €0.75)
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