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US EG contracts roll over for October in line with expectations

ICIS News : 4-Oct-13 21:45

NEW YORK (ICIS)--US monoethylene glycol (MEG), or industrial-grade ethylene glycol (EGI), and diethylene glycol (DEG) contract values were rolled over in October, in line with market expectations, sources said on Friday.

Market sources expected that the recent uptrend would slow down in October and that prices will trend flat to down towards the end of the year.

MEGlobal confirmed in the week that it rolled over its MEG and DEG benchmark prices for North America at 60 cents/lb ($1,323/tonne, 966/tonne) free on board (FOB) and 57 cents/lb FOB, respectively.

Similarly, Huntsman confirmed that it rolled over its MEG and DEG prices from September levels.

Indorama also rolled over its MEG and DEG prices after rescinding a previously announced 2 cent/lb increase.

Other producers were not available for comment.

EG fiber-grade (EGF) contract prices were also rolled over in October on the back of a rollover in the MEG Asian Contract Price (ACP).

The benchmark price applies to railcar orders, or orders of roughly 200,000 lb (91 tonnes). Large customers, who buy in barges, or 3m lb or more, generally receive discounts off the benchmark price.

For the purpose of the ICIS assessment, US contract prices represent levels paid by distributors on an FOB plant basis prior to any discounts, incentives or terminal upcharges.

($1 = 0.73)

By Feliza Mirasol
+1 713 525 2653

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