US monoethylene glycol supply is expected to tighten further in September and October due to scheduled turnarounds during that time and spot prices could firm due to it, sources said Friday.
Five producers are expected to have maintenance over the two months, sources said.
Shell Chemicals started a 45-day planned maintenance at its Scotford, Alberta, MEG plant in early September, and Formosa was expected to start planned maintenance at its Point Comfort, Texas, MEG plant in mid-September, sources said. Shell’s Scotford plant has capacity of 450,000 mt/year, while Formosa’s Point Comfort plant has capacity of 300,000 mt/year.
In addition to Scotford, Shell is also expected to take its Geismar, Louisiana, MEG plant, which has a capacity of around 500,000 mt/year, down for maintenance at the end of September for a month, sources said.
Shell and Formosa officials declined comment, citing company policy to not speak on production rates.
Pemex has planned maintenance at its 200,000 mt/year plant in Morelos, Mexico, and Idesa has a planned turnaround at its 200,000 mt/year plant at Morelos as well, with both slated to begin in October, sources said. Maintenance on both plants was expected to last three weeks, sources said.
MEGlobal is expected to start maintenance on its 320,000 mt/year Prentiss II MEG plant in Alberta, Canada, in October for three weeks, sources said.
Comment from Pemex, Idesa and MEGlobal was unavailable.
Due to the turnarounds, supply has become tighter already, sources said, adding that pricing was a bit firmer because of it.
“US spot prices never fell below 30 cents/lb, and they could climb higher if demand improves or if the maintenances last longer. At the very least, pricing has firmed some,” a trader source said.
US MEG prices were last assessed September 11 at 33.50 cents/lb ($739/mt) FOB US Gulf Coast, with pricing talked in the low-30s cents/lb Friday.
