25 March 2010 03:09 [Source: ICIS news]
HOUSTON (ICIS news)--Negotiated March contract prices for US acrylic acid and acrylate esters have moved up sharply on intense supply pressure, sources said on Wednesday.
Price increases fell short of some producers’ initiatives of up to 20 cents/lb ($441/tonne, €326/tonne), but sellers achieved gains of 13-15 cents/lb, as participants struggled with tight capacity and volume limits stemming from unplanned outages that have plagued the market since December.
Some buyers viewed the highest of the March contract initiatives as an attempt of producers to grab margins. At first, the buyers vowed to accept increases only on feedstock chemical-grade propylene (CGP) values, but eventually conceded to higher offers for acrylates.
Despite a lack of robust demand for monomers from paint, coatings and adhesives makers, spot prices have fluctuated wildly as volumes on sales control or allocation have forced buyers to seek alternate supply.
Spot glacial acrylic acid (GAA) prices from Asia range between ?xml:namespace>
“A tight market always benefits producers,” one source said. “But this is unhealthy.”
In the meantime, April initiatives of 8-12 cents/lb have surfaced from two producers who have cited continued supply constraints as part of their rationale.
($1 = €0.74)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections