29 November 2011 21:31 [Source: ICIS news]
HOUSTON (ICIS)--US November acrylic acid and acrylate esters contract prices fell by an average of 9 cents/lb ($198/tonne, €149/tonne) because of softer market conditions, sources said on Wednesday.
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Weaker demand for GAA and most of the esters as well as declining feedstock values were cited as the principal reasons for the price drop, which most sources said was in the range of 8-10 cents/lb.
A producer said it had dropped acrylates prices by 14-18 cents/lb over the past couple of months, but many buyers said other producers’ price cuts totalled 18-20 cents for that same period.
Feedstock chemical-grade propylene (CGP) contracts settled at 56.50 cents/lb for November after falling by 6 cents/lb from October on high inventory levels.
Market participants agree that softening demand also has stretched supply, and most said they expect further price weakness in December.
Customers were widely heard to be depleting end-of-year inventories for tax considerations and because of waning demand.
While some buyers in the housing and adhesives sectors said demand is unlikely to be robust, one producer predicts a strong recovery ahead of the spring coatings season.
($1 = €0.75)
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