HOUSTON (ICIS)--US ethylene oxide (EO) contract prices for August rose by 3.8% on the back of a 9.1% increase in feedstock ethylene contracts for August, as assessed by ICIS on Friday.
August EO contract prices were assessed at 55.40-64.90 cents/lb ($1,221-1,431/tonne) FOB (free on board) from 53.20-62.70 cents/lb FOB in July.
The increase in EO contracts is based on the settlement in August ethylene contracts.
US ethylene contracts settled at 33.00 cents/lb DEL (delivered), a 2.75 cents/lb increase from 30.25 cents/lb in July.
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 monoethylene glycol (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.