01 February 2011 19:41 [Source: ICIS news]
HOUSTON (ICIS)--US aliphatic solvent price increases of 3 cents/lb ($66/tonne, €48/tonne) proposed for February are needed to offset higher upstream costs, a producer said on Tuesday.
No buyers were immediately available for comment. However, with all major aliphatic producers raising prices, buyers in need of supply will have little recourse, the producer said.
“They can look for lower prices under every rock they see, but I don’t think they will find lower prices, since everyone is raising them. Right now, the big question is whether we should have raised them by 6 cents instead of 3 [cents],” the producer said.
The price of crude oil will likely determine whether there will be additional price-hike proposals, the producer added.
“If crude oil hits $100/bbl, like some say it could, you’ll see another price-hike announcement on the 15th [of February],” the producer said.
Dealer delivered prices for mineral spirits in the US Gulf were 47–52 cents/lb, while hexane prices were in the mid-to-upper 50s cents/lb, as assessed by ICIS.
US aliphatic solvents producers include Calumet, ConocoPhillips, CITGO, Shell and ExxonMobil.
($1 = €0.73)
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