Huntsman Corp plans to roll over its North American monoethylene glycol contract price in June, a source with knowledge of company operations said Thursday.
This comes after Huntsman increased its May contract price by 3 cents/lb compared with April.
Huntsman is, however, planning an increase in its North American diethylene glycol price of 2 cents/lb for June, the source said.
US spot MEG pricing was last assessed May 19 at 31-32 cents/lb FOB USG, unchanged week on week, as pricing indications were heard at that level. Offers were last heard at 33 cents/lb for May loads, while the spot barge market was seen to be quiet over the past two weeks.
"With Asian prices up and down, and US supply still relatively tight, we are waiting to make any adjustments on MEG," the source said.
Asian MEG contract prices, closely watched by the US market, will decrease in June. Shell has nominated a decrease of $60/mt to $850/mt CFR Asia, MEGlobal plans a drop of $70/mt to $850/mt CFR Asia and Sabic has announced a decrease of $75/mt to $890/mt CFR Asia.
The nominations reflect the short-term supply-demand situation in the Asian market, according to sources.
Spot Asian MEG was assessed Wednesday at $750/mt CFR China.
The May US MEG contract price was assessed at 37.67-38.17 cents/lb, down 3.36 cents compared with April.
The contract assessment was based on a weighted formula that discounts the North American benchmark price by 15% and the Asian contract price average by 5%, with each segment equally weighted.
