Dow attempts acrylate increase for June

15 May 2007 00:19  [Source: ICIS news]

HOUSTON (ICIS news)--Higher raw materials prices were cited by Dow Chemical on Monday in an attempt to raise prices in all regions for acrylic acid and esters (acrylates) in June, or as contracts allow.

Dow said in a statement it will seek a 5 cents/lb ($110/tonne) increase for glacial acrylic acid, butyl acrylate, ethyl acrylate, methyl acrylate and 2-ethyhexyl acrylate.

It will seek a $120/tonne increase on the same products in Asia Pacific, Middle East, Africa and Latin America.

Dow also said it would seek a €90/tonne increase on the same products in Europe.

The company cited an increase in raw materials absorbed during the last several quarters for its justification.

The May chemical grade propylene (CGP) contract in the US settled up by 4 cents to 52 cents/lb, according to global chemical market intelligence service ICIS pricing.

Since January, CGP prices have managed an accumulative gain of 13 cents. Feedstock oxo-alcohols n-butanol and 2-EH prices have shored up a net 1-2 cents/lb hike during the same time period.

US acrylate prices increased 3 cents/lb for second-quarter contracts.

Dow is the largest producer of acrylate esters for the merchant market in the US. Other US producers include Arkema, BASF and Rohm and Haas.

“It is a given that the majority of producers will have to announce increases for second quarter due to extremely high feedstock costs,” another US acrylate producer said.

The price initiatives may or not be accepted, however.

Demand was not as strong as it could be with US housing and auto markets at all-time lows and high operating costs have plagued the industry, the producer added.

Acrylic acid is used to produce acrylic esters and superabsorbent polymers. Major ends uses include paper, paint and coatings, and adhesives.

By: Heather McGuire Doyle
+1 713 525 2653

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