IHS Chemical Week

Chemical Week Magazine :: Basic Chemicals & Plastics

IHS: EO shortfall will squeeze prices into 2016, drive new US capacity

10:07 AM MDT | October 25, 2013 | —Clay Boswell

With no new plants announced, ethylene oxide (EO) supplies will continue to tighten for several more years, keeping derivative prices high and margins buoyant, according to analysts at IHS Chemical. They say the situation is likely to become acute when several large plants in the Mideast go off-line for major repairs, probably in 2014-2015. Beginning in 2016, however, a wave of new capacity should arrive in North America and the Mideast, and operating rates and margins could fall sharply. The analysts detail their findings in a new IHS Chemical report, World...

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