29 May 2012 03:11 [Source: ICIS news]
SINGAPORE (ICIS)--Spot prices of acrylic acid (AA) and acrylate esters in domestic market may fall further, after declining in May because of weak demand, abundant domestic supply and downbeat market sentiment, industry sources said on Tuesday.
The prices of butyl acrylate (butyl-A), which is reference point for acrylate esters prices, were assessed at yuan (CNY) 12,600-12,800/tonne ($1,987-2,019/tonne) DEL (delivered) in east China on 28 May, down by CNY1,400/tonne since early May, according to data from Chemease, an ICIS service in China.
There is ample domestic supply because most plants were operating at high rates in April and May, while demand is weak because of the approach of summer and a softening upstream energy and feedstock market, a market player said.
Many downstream facilities were purchasing on a need-to basis in smaller parcels as operating rates had been reduced by as much as 50% in recent months, the market player added.
“June is the traditional off-peak season, I have no confidence that the market will improve,” a downstream producer said.
($1 = CNY6.34)
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