HOUSTON (ICIS)--US ethylene oxide (EO) contract prices for September rose by 3.7% on the back of an 8.3% rise in feedstock ethylene contracts for September, as assessed by ICIS on Friday.
September EO contract prices were assessed at 57.60-67.10 cents/lb ($1,270-1,479/tonne) FOB (free on board) from 55.40-64.90 cents/lb FOB in August.
The increase in EO contracts is based on the settlement in September ethylene contracts.
US ethylene contracts settled at 35.75 cents/lb DEL (delivered), a 2.75 cents/lb increase from 33.00 cents/lb in August.
The majority of EO contracts are formula-based, and price movement comprises 80% of the change in the ethylene price and an additional conversion fee, or adder.
Like ethylene, EO contracts settle at the beginning of the month for the previous month’s price.
EO is largely used to make MEG, a key feedstock for polyethylene terephthalate (PET). EO’s secondary outlet is in surfactants.
EO producers in the US include BASF, Dow Chemical, Eastman, Huntsman, Indorama Ventures, LyondellBasell and Shell Chemical.