16 April 2008 23:59 [Source: ICIS news]
HOUSTON (ICIS news)--Latest indications from companies in the US roofing sector point to a bottom having been reached in the housing industry, a large buyer of acrylates said on Wednesday.
While the source did not have any specific figures, he noted the lag in official statistics on housing starts compared with industry production in anticipation of future construction activity.
The source cited end-use acrylates contacts in the roofing sector as indicating production units were “up from where the bottom was”.
"Plants that had not been busy are now getting busier," the source said.
Earlier on Wednesday, the Department of Commerce reported US new home construction slumped to a 17-year low in March, falling nearly 12% from February to a seasonally adjusted annual rate of 947,000 housing starts.
On Tuesday, the National Association of Home Builders pushed back its outlook for a housing sector recovery, saying the downturn in new residential construction was not expected to hit bottom until early 2009.
Market participants said a stand-off continued in the acrylates market this week, where efforts by producers to pass on feedstock costs through 3-5 cents/lb ($66-110/tonne) second-quarter price hikes were meeting stiff resistance amid weak downstream demand.
First-quarter glacial acrylic acid contracts were settled up 3 cents/lb at 107-111 cents/lb, according to data from global chemical market intelligence service ICIS pricing.
For more on acrylates visit ICIS chemical intelligence
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