20 April 2011 23:19 [Source: ICIS news]
HOUSTON (ICIS)--Two US acrylic acid and acrylate esters producers have proposed May contract price increases of 5-8 cents/lb ($110-176/tonne, €77-123/tonne) on sharply-higher propylene costs for April, sources said on Wednesday.
The initiatives followed April feedstock chemical-grade propylene (CGP) gains of 15 cents/lb, which were driven by tight supply and firm demand for propylene.
Dow Chemical said in a letter to customers that its proposed 7 cent/lb increase stemmed from unexpectedly-higher raw material prices.
Arkema’s price letter cited similar rationale in its bid to raise methyl acrylate and ethyl acrylate contract prices by 5 cents/lb and glacial acrylic acid (GAA) prices by 7 cents/lb. Its butyl acrylate and 2-ethylhexyl acrylate (2-EHA) prices would increase by 8 cents/lb.
"This is strictly a raw-material driven effort,” a producer said.
A buyer conceded as much, saying “I think because the [5-9 cent/lb] acrylates announcements for April weren't enough to cover the 15 cent/lb jump in propylene in April, the sellers are seeking the remainder in May”.
April acrylates contracts were heard settling up at 5-7 cents/lb, but were not yet assessed up by ICIS, pending further market confirmation.
US acrylic acid and acrylate esters contract prices settled flat in March on then-weakening CGP.
March contract values for GAA were at $1.38-1.43/lb, according to ICIS.
($1 = €0.70)
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