21 August 2008 23:46 [Source: ICIS news]
WASHINGTON (ICIS news)--US acrylic acid (AA) and acrylate esters producer BASF notified its customers on Thursday that it would increase prices on its acrylic monomers sold in the US, Canada and Mexico on 1 September.
The company plans to increase prices of glacial acrylic acid by 4 cents/lb ($88/tonne, (€60/tonne) and of methyl acrylate (methyl-A) and ethyl acrylate (ethyl-A) by 5 cents/lb. Butyl acrylate (butyl-A) prices will be lifted by 6 cents/lb and 2-ethylhexyl acrylate (2-EHA) by 8 cents/lb.
BASF said the increments were necessary due to continued market tightness for key raw materials and high costs for the energy and raw materials needed to produce acrylic acid and acrylate esters.
A company source cited the increments in feedstock oxo-alcohols prices in August and the possibility of further upward adjustments in September as one of the leading causes for the acrylates increases.
A majority of oxo-alcohols producers have stepped out with a 4 cent/lb increase initiative for 1 September, following a 10 cent/lb hike implemented on 2-ethylhexanol (2-EH) and n-butanol (NBA) in August.
The September oxo-alcohols increments were likely to be pushed through due to snug availability, sources said.
Prices for another key feedstock, chemical grade propylene (CGP), remained at high levels. August contracts for CGP remained partially settled at the rollover price of 83.50 cents/lb, sources said, with little prospect of a drop for the month.
Other acrylates producers were anticipated to follow BASF’s lead.
Buyers, however, doubted the increases would be implemented as proposed, given the recent price fall in the energy complex and the soft market conditions in downstream segments.
Demand from such downstream segments as construction and housing have been lacklustre, with a recovery not expected any time soon.
Acrylic acid and its derivatives are used in varnishes, paints, coatings, adhesives, fibre binders and other products for the construction industry and coatings for the paper industry.
BASF, Arkema, Dow Chemical and Rohm and Haas are among the major suppliers of acrylic acid and acrylate esters.
Ashland, Solar Compounds, HB Fuller and DSM are among the buyers.
($1 = €0.68)
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