BASF levies N America acrylates surcharge

16 July 2008 22:59  [Source: ICIS news]

HOUSTON (ICIS news)--BASF is implementing temporary energy- and freight-related surcharges of 2 cents/lb ($44/tonne, €27/tonne) effective on 15 July on its acrylic monomers sold in North America, a company source said on Wednesday.

The surcharges will remain in effect at least through the end of this quarter, the source said.

The surcharges have become vital in a market characterised by volatile prices for crude oil and rising feedstock chemical-grade propylene (CGP) and oxo-alcohols prices, the source said.

"If you're not getting price increases fast, you will lose money on every pound," he said.

"Margins are being squeezed along the entire chain," he said. "The freight guys are coming to us with surcharges, and we have to pass them along."

Feedstock CGP for July contracts rose by 10 cents/lb, taking the price to 83.50 cents/lb, according to data from global chemical market intelligence service ICIS pricing. 

Oxo-alcohol feedstock n-butanol and 2-ethylhexanol (2-EH) have both been nominated at plus 10 cents/lb for 1 August.

Other US acrylates producers include Dow Chemical, Rohm and Haas, Arkema and Sasol.

($1 = €0.63)

For more on propylene visit ICIS chemical intelligence
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By: Larry Terry
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