US June DEG rises 3-7 cents/lb, market see individual settlements

25 June 2014 21:20 Source:ICIS News

NEW YORK (ICIS)--US diethylene glycol (DEG) contract prices for June settled up by 3.0-7.0 cents/lb ($66-154/tonne), with buyers and suppliers settling on an individual basis as an overall market consensus was not reached, sources said on Wednesday.

The DEG contract price range for June was assessed by ICIS at 61-69 cents/lb FOB (free on board) from 58-62 cents/lb FOB in May.

Several market participants said that they settled with a 4.0 cents/lb increase, while another participant confirmed that its June DEG price was settled up by 5.0 cents/lb.

Yet another participant said that it is likely that most buyers settled at the lowest end of the producer-announced price increases. The lowest producer-announced price increase for June was 3.0 cents/lb.

Meanwhile, MEGlobal’s North American Benchmark (NAB) price was adjusted up 7.0 cents/lb to 69 cents/lb FOB on 1 June, according to a company letter. The company’s NAB DEG raise is for full tank-car shipments.

The upswing in US DEG prices is attributed to price pressure from rising Asia DEG prices and a tight US market amid strong demand, market sources said.

Unsaturated polyester resins (UPR) and polyester polyols are major DEG outlets.

Major DEG 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