BASF targets €50-60/t ethanolamines price hikes in Europe

24 June 2009 17:02  [Source: ICIS news]

LONDON (ICIS news)--BASF plans to increase European ethanolamines prices by up to €60/tonne due to a rise in the upstream cost of ethylene, it said on Wednesday. 

Mono-ethanolamine (MEA) and di-ethanolamine (DEA) would rise by €50/tonne ($71/tonne) and tri-ethanolamine (TEA) by €60/tonne with immediate effect, the company said.

The targeted price hike would apply to current supply agreements as and when contracts allowed, BASF added, but it was unclear whether increases would be accepted by buyers.

The announcement was made in reaction to the July ethylene contract which was agreed on Tuesday at €785/tonne, up €80/tonne from June.

“Of course it makes sense, but I wonder if they can really push it through. Demand and availabilities will have much more of an impact than feedstock costs,” a re-seller said.

Another producer said it was “absolutely necessary to have an increase,” but added that it had not made a final decision on exact targets for July.

“Product is still long and we are approaching the summer season,“ a key buyer commented.

“There is tremendous pressure from downstream customers too,” added another customer, who was concerned that any increase would not be passed on.

Discussions were expected to get underway in earnest in the next week or two.

MEA, DEA and TEA are intermediates used in the manufacture of agrochemicals and wood preservatives, surfactants for detergents and cleaning products, cement additives and pharmaceuticals.

($1 = €0.71)

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By: Jane Massingham
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