NPRA '08: Global acrylic acid operates under 80%

30 March 2008 21:23  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS news)--Global capacity utilisation at acrylic acid plants has been dragged below 80% on overcapacity stemming from new output streams in Asia, a producer said on Sunday.

 

Some Asian plants are even operating below 60%, the producer said on the sidelines of the 33rd National Petrochemical & Refiners Association (NPRA) meeting.

 

Other dynamics affecting the acrylic acid market were the slump in the US housing sector, which has trimmed demand for coatings, and the weakness in the dollar.

 

Both factors have hurt foreign producers trying to sell into the US market, even though US prices have been pushed higher by soaring values for feedstock propylene in the last six months, the source said.

 

US sellers have proposed price hikes of 3-7 cents/lb ($66-154/tonne) effective 1 April for acrylic acid and acrylate esters.

 

US Gulf acrylic acid contracts for glacial material were currently at 107-111 cents/lb, up from 100-107 cents/lb a year ago, according to global chemical market intelligence service ICIS pricing. 

 

The NPRA meeting began on Sunday and runs through Tuesday.

 

($1 = €0.63)

 

For more on acrylic acid visit ICIS chemical intelligence

By: Stephen Burns
+1 713 525 2653

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