8/22/23, 8:01 PM ICIS Ethylene Glycols US - Pricing & Insight-17-Aug-2023

Ethylene Glycol (USG)

By Melissa Wheeler
18-Aug-2023

Overview Outlook Prices Upstream Downstream Other Regions

Please click here for full details on the criteria ICIS uses in making these price assessments.

OVERVIEW

TEG market tightens on planned, unplanned outages; spot prices up

Dow’s Taft, Louisiana , EO unit down for short turnaround
MEG, DEG demand remains poor on economic headwinds

The US triethylene glycol (TEG) market has tightened as a result of both planned and unplanned outages on the
ethylene glycols (EG) markets. TEG is a byproduct of monoethylene glycol (MEG) and because of the tighter market
due to the various outages, TEG spot prices have ticked up.

Dow’s Taft, Louisiana, ethylene oxide (EO) unit is down for a short turnaround, further tightening supply of TEG.

MEG, and diethylene glycol (DEG) demand remains poor on economic headwinds including shifting consumer
spending habits and elevated interest and mortgage rates.

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OUTLOOK

DEG could tighten if planned, unplanned outages continue into September

Captive EO producers likely to shift to produce more EO on snug derivatives markets
MEG exports likely to continue through Q3

PRICES

CONTRACT PRICES
Price Range One Year Ago USD/tonne
MEG
FOB USG AUG US CTS/lb n/c 22.50-28.50 n/c 26.50-31.50 496-628
MEG Fibre Grade
FOB USG Export AUG US CTS/lb n/c 30.00-31.00 n/c 34.00-35.00 661-683
DEG
FOB USG AUG US CTS/lb -1 31.00-34.00 -1 44.00-54.00 683-750

SPOT PRICES
Price Range Four Weeks Ago USD/tonne
MEG

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FOB USG Barges US CTS/lb n/c 19.00-21.00 -1 17.00-22.00 419-463

FOB USG Export US CTS/lb n/c 20.00-24.00 -1 20.00-25.00 441-529
DEG
FCA USG US CTS/lb n/c 31.00-34.00 n/c 31.00-33.00 683-750
TEG
FCA USG US CTS/lb +5 65.00-75.00 +10 60.00-65.00 1433-1653

Both MEG barges and MEG export spot prices decreased week on week as a result of a decrease in Asia spot prices.

DEG spot prices were unchanged week on week.

TEG spot prices rose as a result of tighter supply due to the various outages on the market currently.

These are the spot shipping fixtures for MEG and DEG this week:

Product Tonnes Origin Destination Dates Vessel

MEG 7,000 USG Mediterranean 10 August Stolt Ilex

MEG+DEG 18,000 Point Comfort Barcelona+Gebz 15 August TBN

e

MEG 10,000 USG ARA 1 September SC Virgo

MEG 12,000 USG Mediterranean 10 September Stolt Vanguard

UPSTREAM

Ethane
Ethane premium to natural gas narrows
Ethane-based steam cracking margins rise
US Q2 ethane production reaches record high

Ethylene
Supply sufficient with inventories up year on year
Domestic derivative demand continues to be weak
Export activity slows down
FEEDSTOCK CONTRACT PRICES
Price Range One Year Ago
Ethylene
DEL US JUL US CTS/lb - 29.750 +2.750 38.250
Ethylene Oxide
FOB US JUL US CTS/lb +1.80 57.15-59.15 +1.80 60.60-70.10

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DOWNSTREAM

US PET
Inventory volumes remain flat
Demand continues to be lower than expected
Operating rates 10-15% lower than normal

Latin America PET

Higher PET prices in Argentina
PET demand increases in Brazil
Mexico PET prices steady

P olyester Polyols
Demand remains sluggish
Availability sufficient
Feedstock costs largely steady

OTHER REGIONS

Asia
Supply remains ample on high port inventories, plant restarts
Yuan depreciation, soft demand dampen buying
Falling polyester operation weighs on restocking

Europe
MEG spot prices spike
Sellers anticipate tighter market end Q3/Q4
Some increased spot inquiries

Freight rates
Asia to North America
North America to Asia
Europe to North America
North America to Europe

Note to subscribers: ICIS reports contain information gathered from a wide range of sources. If you would like to
have your views reflected in this report, please contact the editor by email at melissa.wheeler@icis.com.

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