10 January 2011 23:57 [Source: ICIS news]
HOUSTON (ICIS)--US maleic anhydride (MA) contracts rose by 3 cents/lb ($66/tonne, €51/tonne) to 79.20-85.20 cents/lb for January as a result of rising feedstock costs, sources said on Monday.
Buyers confirmed that the 3 cent/lb increase was fully accepted in the market.
MA producers cited rising feedstock butane prices as the reason behind the increase.
Butane prices began to rise near the end of November through December and traded as high as 170s cents/gal, compared to prices in the 140s cents/gal in May.
A major US MA producer said the January price increase, effective 1 January, was firm and the producer was invoicing its customers with the increment.
MA is an intermediate chemical often used to make unsaturated polyester resin, a material produced for the construction and automotive industries.
US chemical producer Reichhold has already announced a 10 cent/lb price increase on Monday on all North American unsaturated polyester and vinyl ester resins based on stronger feedstock MA prices.
The resins increase is effective for all orders shipped on or after February.
The last price hike for the US MA market took place in June, when it rose by 4 cents.
Major US MA producers include Ashland, Huntsman, Lanxess and Flint Hills Resources.
($1 = €0.78)
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