Three US MA sellers turn out 3 cent/lb price nominations

14 December 2010 20:54  [Source: ICIS news]

HOUSTON (ICIS)--A third US maleic anhydride (MA) producer is seeking a price hike of 3 cents/lb ($66/tonne, €50/tonne) for January, sources said on Tuesday.

The first price nomination was announced by an MA producer on 30 November. Two more price nominations at the same level were followed last week and this week.

A fourth producer was heard to offer a similar price increase, but this was not confirmed.

High butane costs, driven by spikes in crude oil, are behind the price increases, producers said.

If passed, the price increases would be the first seen in the market since June.

Current molten MA prices in the US were in the range of 76.20-82.20 cents/lb, as assessed by ICIS pricing.

Producers appeared optimistic the price increase would hold, given the increasingly escalating prices of butane.

“This is pretty excessive cost pressure on MA producers and more than the 3 cent/lb increase that we announced,” one producer said.

Buyers have met the announcements with some scepticism.

US MA producers include Flint Hills Resources, Huntsman, Ashland and Lanxess.

($1 = €0.75)

By: Ruth Liao
+1 (713) 525-2635

For more on maleic anhydride, visit ICIS chemical intelligence 
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Paul Hodges studies key influencers shaping the chemical industry in Chemicals and the Economy

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