Dow nominates April US solvents increases on feedstock pressure

06 March 2010 00:11  [Source: ICIS news]

HOUSTON (ICIS news)--Dow Chemical plans to increase its US isopropanol (IPA) and methyl isobutyl ketone (MIBK) contract prices effective 1 April because of escalating feedstock supply constraints and higher costs, the US producer said on Friday.

If successful, the price of both products would rise by 5 cents/lb ($110/tonne, €81/tonne). The initiatives were prompted by upward price pressure on primary feedstock propylene because of constrained supply and growing demand for the monomer, the producer said.

Cracker outages in recent weeks have tightened the propylene market.

This week, Chevron Phillips Chemicals declared force majeure on US olefins deliveries following an outage at one of its Sweeny crackers in Texas.

Meanwhile, current March IPA initiatives of 5-8 cents/lb had begun to settle at the low end of the range, along with March MIBK initiatives of 5-7 cents/lb, sources said.

Current IPA contract prices are 77-79 cents/lb, and February MIBK prices are 93-103 cents/lb, according to data from global chemical market intelligence service ICIS pricing.

Other US IPA producers include Shell Chemicals, ExxonMobil and LyondellBasell. US MIBK producers include Dow, Eastman and Celanese.

($1 = €0.74)

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