Third US acrylates producer seeks February increases

22 January 2013 22:23  [Source: ICIS news]

HOUSTON (ICIS)--A third US acrylic acid and acrylate esters producer has announced its intent to raise prices by 7-8 cents/lb ($154-176/tonne, €116-132/tonne), effective 1 February, sources confirmed on Tuesday.

In a letter to customers, BASF cited higher raw material costs as its primary rationale for the increase.

BASF’s acrylates proposal, which seeks an increase of 8 cents/lb for 2-ethylhexyl acrylate (2-EHA), and an increase of 7 cents/lb for glacial acrylic acid (GAA) and the other esters, is the third initiative for February among the major producers.

Dow Chemical proposed acrylates increases of 3 cents/lb for January and 9 cents/lb for February. Although Arkema submitted no January proposals, it is seeking gains of 11-14 cents/lb for February.

Buyers are bracing for sharp February acrylates price gains because primary feedstock chemical-grade-propylene (CGP) rose by 15 cents/lb for January.

BASF said late last week that it had achieved its proposed gains of 5-6 cents/lb for January.

However, for most customers, January acrylates negotiations were still under way, with most buyers insisting that broad January pricing would likely rise by only 1-2 cents/lb because market conditions remain largely soft, including ample supply and lacklustre-but-improving demand.

Current GAA prices are in a range of $1.10-1.14/lb, as assessed by ICIS.

($1 = €0.75)

For more on acrylates, visit the ICIS Plants & Projects database

By: Larry Terry
1 713 525 2653

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly