August US MA prices will likely roll over into September

16 August 2011 17:46  [Source: ICIS news]

HOUSTON (ICIS)--US maleic anhydride (MA) contract prices will likely stay flat from August to September on steady market fundamentals, sources said on Tuesday.

A major MA producer said September contracts would likely stay flat from August prices, based on average feedstock butane prices. August MA contracts also were a rollover from July.

The MA producer said butane prices in the mid-to-upper 180s cents/gal in August would justify the rollover. The source viewed supply as balanced to snug.

Prices for feedstock normal butane, or n-butane, plunged last week to the low 170s cents/gal, following the collapse of crude and liquefied petroleum gas markets, and then later recovered to the mid-180s cents/gal.

One butane trader said the n-butane supply was considered stable, but n-butane prices would remain sensitive to the direction of crude oil prices.

US August MA contract prices were 87.2–93.2 cents/lb ($1,922–$2,055/tonne, €1,326–€1,418/tonne) FOB (free on board) USG (US Gulf) for molten material, as assessed by ICIS.

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

($1 = €0.69)

For more on maleic anhydride visit ICIS chemical intelligence

By: Ruth Liao
+1 713 525 2637

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