Europe glycol ethers spot prices roll over for September, supply steady

Source: ICIS News

2018/09/14

LONDON (ICIS)--The European glycol ethers market remains balanced, with spot prices rolling over for September, according to sources on Friday.

Sellers targeted a mixture of rollovers and double-digit increases for the month.

INEOS’ sales controls continue due to shortages of upstream ethylene oxide (EO) and as a result some minor increases were achieved depending on the starting point.

However, the majority of feedback indicated that prices were stable between August and September due to balanced supply conditions.

Demand was expected to pick up for September and, though firmer purchasing started slowly, sellers are beginning to note an uptick as players enter the second half of the month.

One producer noted supply constraints on butyl glycol (BG) this month, whileButyl di-glycol (BDG) conditions were said to be steady in comparison.

Though some sellers are facing constraints on upstream ethylene oxide (EO) and glycol ethers, the market remains steady at present.

The upstream ethylene contract reference price for September rolled over.

BG prices were assessed at €1,160-1,200/tonne while BDG was valued at €1,420-1,480/tonne on a FD (free delivered) NWE (northwest Europe) basis.

Some sellers expect supply to tighten in the fourth quarter due to a number of upcoming EO turnarounds.

INEOS are scheduled to conduct an EO and glycol ethers planned maintenance next month, according to sources.

Divided in E-series and P-series, depending on whether they are made from ethylene oxide (EO) or propylene oxide (PO), glycol ethers are mainly used as a solvent for domestic and industrial applications such as paints and coatings.