Ethylene glycol is used as an intermediate in the production of polyesters and as an automotive antifreeze. Around 55% of world production is used in polyester fibres, 16% in PET resin, 15% in antifreeze, and the balance in other applications such as de-icing fluid and surface coatings. There are three grades of ethylene glycol; fibre grade, industrial grade and antifreeze grade.
Specific applications include its use as a heat-transfer fluid in aircraft and runway de-icing mixtures, to provide freeze-thaw stabilisation to latex coatings, to improve flexibility and drying time of oil-based paints containing alkyd resins, as a dehydrating agent for natural gas, in motor oil additives, and as an additive in the formulation of inks, pesticides, wood stains, adhesives, and other products. In explosive water-gels and slurries, it lowers the freezing point and acts as a coupling agent between water and the other components. High purity ethylene glycol is used as a solvent and suspending medium for ammonium perborate, the conductor in most electrolytic capacitors. Ethylene glycol is also used to make glycol ethers.
Ethylene glycol is harmful, and a chronic poison if ingested. It is combustible, but not flammable.
ICIS pricing quotes mono ethylene glycol in Europe, Asia-Pacific, China and ethylene glycol in the US Gulf.
Frequency:
MEG (EUROPE)
Weekly Price Assessments:
MEG Monthly Contract prices
MEG Spot prices
Diethylene Glycol (DEG) Spot Prices
Feedstock Prices
MEG (ASIA-PACIFIC) & MEG (China)
Daily Price Assessments:
MEG Spot Prices
#appears only in MEG (Asia) daily report
Weekly Price Assessments:
MEG Fibre Grade Monthly Contract Prices
MEG Spot Prices
DiethyleneGlycol (DEG) Spot Prices
l CFR CHINA MAIN PORT (USD/MT & conversion to US CTS/LB)
l EX-TANK EAST CHINA (CNY/MT & conversion to US CTS/LB)*
l EX-TANK SOUTH CHINA (CNY/MT & conversion to US CTS/LB)*
#appears only in MEG (Asia) weekly report
* appears only in MEG (China) weekly report
Ethylene Glycol (US GULF)
Weekly Price Assessments
Ethylene Glycol Monthly List Prices (FOB)
Ethylene Glycol Monthly Contract Prices (FOB)
Ethylene Glycol Spot Prices (FOB)
General Information:
Assessment window: Weekly Price assessments are based on information supplied by market participants through the week up to close of business on Fridays at 1800 hours in London and at 1700 hours in Singapore and Shanghai.
Daily assessments are based on information gathered throughout the day to close of business at 1700 hours in Singapore and Shanghai.
Specifications:
Europe and the US:
MEG % max DEG content – 0.5% (technical), 0.05% (fibre)
% max water content – 0.2% (technical), 0.05% (fibre)
Acidity – 0.005% (technical), 0.002% (fibre)
DEG minimum purity 99.5-99%
% max water content – 0.1-0.2%
In Asia, ICIS pricing quotes fibre-grade MEG of 99.8% purity
Timing: Generally cargoes loading or delivered four-six weeks forward from the date of publication, except for China domestic business which are for immediate delivery of up to three days.
Terms: In Europe and the US, standard terms are 30 days. In Asia regional cargoes are loaded (FOB) or delivered (CFR) four weeks forward from the date of publication. For deep-sea cargoes, loaded or delivered eight weeks forward from the date of publication. L/C 90 days, unless stated otherwise. For Chinese domestic contract quotes in CNY, terms are at least 90 days credit; China domestic spot business is cash on delivery or cashier’s order.
Standard cargo size: In Europe, the CIF NWE T2 quote reflects bulk spot trade for a minimum of 1,000 tonnes. FCA RDAM T2 reflects spot trade on trucks or railcars in the distribution sector of typically 20-25tonnes.
In Asia, standard imported cargo size is 1,000-3,000 tonnes unless otherwise stated. For the Chinese domestic market, cargoes in eastern China are either 500 tonnes and above, or smaller than 500 tonnes. In southern China, standard cargo size is below 500 tonnes.
In China, DEG import cargoes are either 500 tonnes and above. Standard domestic transactions in east and south China are 20-50 tonnes ex-tank.
In the US, standard cargo size for spot assessments is 5,000-10,000 tonnes. The standard cargo size for EGI, DEG and TEG contract assessments is truckload and railcar amounts, or about 2,000-3,000 tonnes.
Assessment basis: Due to the volatile nature of MEG markets, ICIS pricing price assessments are weighted towards the end of the week.
The published ranges represent a combination of the following price indications: deals concluded, bids and offers, buy and sell indications and notional discussions heard by the close of business on Friday. Notional adjustments are made to accurately reflect the levels at which business would probably take place by the close of business that week. The MEG Daily (Asia) report covers spot deals on a CFR China Main Port basis. The assessment takes into account deals, bids and offers and price ideas heard throughout the day.
The European monthly contract price reflects a settlement confirmed by at least two producers and two consumers agreed on an arm’s length basis.
Factors affecting price movements, including supply and demand situation, plant operating rates, feedstock and derivative markets, cargo movements, and general sentiment, will also be taken into account. A commentary and quote on DEG spot prices is included in the Europe, Asia-Pacific and China reports. European FD assessments reflect business done for the current calendar month.
The list prices published in the Ethylene Glycol (US Gulf) report for EGF, EGAF, EGI, DEG and TEG represent non-contract prices paid by consumers. These prices are assessed on a FOB plant basis. Information used to assess list prices is gathered throughout the week from suppliers, consumers and other market players.
The US contract prices represent levels paid by distributors on an FOB plant basis prior to any discounts, incentives or terminal upcharges. The EGF Export contract price is derived from Asian contract prices and is based on an average of that month’s nominated Asian contract prices, minus estimated freight of USD 55-60 tonnes.
US spot prices represent barge amounts of EGAF on an FOB basis. The US report carries trade data from the Department of Commerce
All regional reports offer market commentary that includes details of traced transactions, news on the supply/demand balance, export/import information, contract price negotiations and general sentiment for price direction. Where applicable there is product information, comments on up and downstream market developments and general market intelligence. This includes commentary and pricing information on anti-freeze as well as DEG and TEG.
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