HOUSTON (ICIS)--US ethylene oxide (EO) contract prices for November fell by 2.7% on the back of a 6.4% decrease in the November contract settlement for feedstock ethylene.
November EO contracts were assessed on Friday at 52.4-61.9 cents/lb ($1,155-1,365/tonne) FOB (free on board), a decrease of 1.6 cents/lb from October.
US November ethylene contracts were assessed at a 2 cent/lb decrease.
US EO supply is likely long this month as demand into downstream polyethylene terephthalate (PET) and surfactants is soft on seasonality.
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 are settled at the beginning of the month for the previous month’s price.
EO is largely used to make monoethylene glycol (MEG), a key feedstock for polyethylene terephthalate (PET). EO’s secondary outlet is in surfactants.
Other EO derivatives include glycol ethers, polyols for polyurethane systems, polyethylene glycols and polyalkylene glycols.
EO producers in the US include BASF, Dow Chemical, Eastman Chemical, Huntsman, Indorama Ventures, LyondellBasell and Shell Chemical.