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Buyers and sellers play waiting game in flat glycol market.(Petrochemicals)

WITH THE abatement of the SARS crisis in China, the market for ethylene glycol (EG) appeared poised to reach earlier projections for a sold-out second half. However, the surge in demand has yet to occur, and Chinese buyers have set price targets well below the contract nominations of leading producers.

The impact of the SARS epidemic on the glycol business was significant as polyester manufacturers cut operating rates and reduced inventories. In response, US glycol producers also throttled back operating rates to record low levels. In June, operating rates for glycol feedstock, ethylene oxide (EO), were 71 percent as glycol production in North America was at only 50 ...

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