US monoethylene glycol contracts are set to move higher in September, with multiple producers planning to increase prices, sources said Thursday.
MEGlobal is raising its North American Benchmark price to 60 cents/lb ($1,323/mt), a 3 cents/lb ($66/mt) increase over August levels, the company said. The increase is in line with MEGlobal's Asian contract price, which was set at $1,210/mt for September, a $70/mt increase from the previous month.
Indorama Ventures will raise its US MEG price to 64 cents/lb ($1,411/mt), up 4 cents/lb ($88/mt) from August, according to a letter obtained by Platts. Equistar Chemicals plans to raise its US price by 7 cents/lb ($154/mt), according to another letter obtained by Platts. Equistar's letter did not provide a base price.
US MEG contracts for fiber and PET makers were assessed at 48.25 cents/lb ($1,064/mt) for August, up 1.5 cents/lb from July levels, based on North American and Asian producer discounts for large volume buyers.
There are three MEG ACP sellers in Asia -- MEGlobal, Sabic and Shell. MEGlobal and Sabic ($1,200/mt for September) have announced increases of $70/mt and $100/mt, respectively. Shell has not yet announced its September MEG ACP.
US Gulf Coast spot prices were last assessed Friday at 47.00-48.00 cents/lb FOB USG ($1,080-$1,102/mt), up 1.5 cents/lb from the previous week.
Market sources indicated Thursday that prices could be moving higher.
US supply has been heard tightening this month as higher prices in Asia sparked overseas buy interest for US material. In addition, Huntsman declared an MEG force majeure last week after a routine inspection on August 5 uncovered signs of stress cracking in one of its Port Neches, Texas, ethylene oxide units, which was integrated with the MEG unit.
Market sources have also seen increased interest from antifreeze bottlers ahead of the fall canning season.
