EPCA 16’: Europe's PGE demand has more positive outlook - sources

04 October 2016 10:15 Source:ICIS News

BUDAPEST (ICIS)--Europe's demand is said to be picking up in the propylene glycol ether (PGE) market, according to a distributor on the side-lines of the European Petrochemical Association (EPCA) annual meeting.

Following the October propylene contract settlement, PGE price targets were understood to be firmer this week, however, a seller said it was awaiting more customer feedback.

The source also said that demand usually increases in October compared to the summer months and that demand this year was better than last year. It also said that it was not surprised to see a push for higher prices this month after the propylene settlement and also because of margin recovery.

There was also talk of Sadara and additional capacity and the global impact on ethylene based glycol ether supply. The source said additional supply will impact the market, however, there are still questions about additional volumes and the trade flow direction.

Sadara is a joint venture firm between Saudi Aramco and US based Dow Chemical. Sadara Chemical Company (Sadara) started up its 1.5m tonne/year mixed-feed cracker on 28 August in Jubail, Saudi Arabia, the company said in a statement at the end of August.

The 50th annual EPCA meeting runs from 1-4 October in Budapest, Hungary.

By Melissa Hurley