19 December 2012 17:38 [Source: ICIS news]
HOUSTON (ICIS)--US petrochemical Dow has announced a 3 cent/lb increase for acrylic acid and acrylate esters for January contracts, market sources said on Wednesday.
Dow representatives could not be reached for comment, but three buyers confirmed the price initiative. According to the sources, there was not stated reason for the increase, although they speculated that it might be the cost of primary feedstock propylene.
US propylene December contracts last week rose by 1 cent/lb, with polymer-grade propylene (PGP) at 58.00 cents/lb and chemical-grade propylene (CGP) at 56.50 cents/lb. The December contract increase resulted from a continued strengthening in spot prices, which rose in the past few weeks amid the unexpected shutdowns of several US crackers.
US December acrylate contract values had settled flat from November in the range of $1.10-1.14/lb ($2,425-2,513/tonne, €1,843-1,910/tonne), as assessed by ICIS.Buyers said that Dow might be able to achieve at least a partial implementation of the proposed increase but that it would meet some resistance.
“They’re going to have a battle on their hands,” one buyer said.
There was no word of any other announcement from producers, sources said.
US Acrylates producers also include Arkema and BASF.
($1 = €0.76)
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