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Updated to Q1 2017
US monopropylene glycol (MPG) prices trended higher throughout the first quarter of 2017, following the movement of upstream propylene.
Monthly contract prices are typically influenced by the delta of the previous month’s propylene contract price, and generally follow formula-based pricing.
Formula-based MPG contract prices fell in January, reflecting the lower December propylene settlement. However, propylene prices have been rapidly rising since the beginning of the year, which in turn saw February and March contracts rise.
Monthly MPG trends also take into account pricing based on negotiations between buyers and sellers that are not dependent on the formula pricing.
According to sources, non-formula based contracts and spot prices also trended higher during the quarter, with producers implementing multiple increases throughout February and March.
Feedback from the market indicated that supply tightened during the period, and an outage at Huntsman’s propylene oxide (PO)/methyl tertiary butyl ether (MTBE) plant in Port Neches, Texas, was also expected to contribute to supply tightness towards the end of the quarter.
Meanwhile, demand was said to be healthy on account of low inventories, production issues and an uptick in pre-increase buying.
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ICIS price assessments are based on information gathered from a wide cross section of the market, comprising consumers, producers, traders and distributors. Confirmed deals, verified by both buyer and seller, provide the foundation of our price assessments, giving you a robust reference for your negotiations.
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ICIS price assessments are based on information gathered from a wide cross-section of the market, comprising consumers, producers, traders and distributors from more than 250 reporters world-wide. Confirmed deals, verified by both buyer and seller, provide the foundation of our price assessments.
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