29 January 2013 23:32 [Source: ICIS news]
HOUSTON (ICIS)--US January acrylic acid and acrylate esters contract values rose by an average of 2 cents/lb ($44/tonne, €33/tonne), most sources confirmed on Tuesday.
The increase takes glacial acrylic acid to a range of $1.12-1.16/lb, as assessed by ICIS.
Two of the three major domestic producers proposed January increases of 3-6 cents/lb in an apparent attempt to get ahead of anticipated sharply higher February feedstock propylene prices.
One producer said it achieved its proposed January gains of 5-6 cents/lb, mostly on pre-buying demand. “Overall, we didn’t get pushback on the 5 cents/lb,” the producer said. “Customers were aware of propylene’s January increase.”
However, January price-hike efforts struggled to increases of only 1-2 cents/lb, with most customers citing December propylene contract gains of only 1 cent/lb.
With January’s chemical-grade propylene (CGP) increase of 15 cents/lb, acrylates price-hike efforts for both January and February eventually totalled 11-14 cents/lb for February.
Given ongoing soft market conditions, including ample supply and lacklustre-but-improving demand, most sources expected only a marginal gain in January pricing, but a gain of at least 10 cents/lb for February.
“Downstream demand hasn’t picked up at all yet,” a buyer said. “That won’t happen until customers start making paint.”
($1 = €0.74)
For more on acrylates, visit the ICIS Plants & Projects database
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.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections