US MEG contract prices for May roll over

09 May 2014 22:01 Source:ICIS News

NEW YORK (ICIS)--US monoethylene glycol (MEG), or EG industrial-grade (EGI), contract prices for May rolled over from April values amid plentiful supply and relatively good demand, market sources said on Friday.

Producers and buyers both confirmed settling on rollovers in their May contracts.

May MEG contracts are assessed at 50-52 cents/lb ($1,102-1,146/tonne) free on board (FOB), steady from 50-52 cents/lb FOB in April, as assessed by ICIS.

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.

MEG supply is plentiful, market participants said. Demand is said to be good in the downstream polyethylene terephthalate (PET) sector, which is picking up.

MEG is used in the production of PET and anti-freeze/coolant.

Major MEG producers in the US include BASF, Eastman Chemical, Formosa Plastics, Huntsman, Indorama Ventures, LyondellBasell, Shell Chemical, and MEGlobal.

MEGlobal is a joint venture between Dow Chemical and Petrochemical Industries Co (PIC).

By Feliza Mirasol