Dow seeks US March increases for acrylates, VAM, MMA

04 February 2013 23:58  [Source: ICIS news]

HOUSTON (ICIS)--Dow Chemical is seeking March 1 increases for its performance monomers including glacial acrylic acid (GAA), acrylate esters and vinyl acetate monomer (VAM), customers said on Monday.

A price letter issued by Dow to its customers indicated the producer intends to raise prices by 5-7 cents/lb ($110-154/tonne, €80-113/tonne). No reason was cited, but feedstock gains are exerting upward pressure on the derivatives.

The March acrylates initiatives surfaced even as February acrylates price-hike efforts of 9 cents/lb are still being negotiated, prompting one buyer to suggest the company was being “greedy”.

A VAM buyer said he was surprised to see a 5 cents/lb increase proposed for March, considering there was a 6 cent/lb increase proposed in early January and then a sales control issued in late January.

The price letter included a proposed 7 cent/lb increase for methyl methacrylate (MMA).

The US acrylates contract for January rose by 2 cents/lb to reach $1.10-1.14/lb, as assessed by ICIS.

February acrylates prices are expected to rise by 10-13 cents/lb, based on January and February initiatives totalling 11-14 cents/lb, from all three major producers.

US acrylates producers include Dow, Arkema and BASF.

US VAM producers include Dow Chemical, DuPont, Celanese and LyondellBasell.

($1 = €0.73)

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

Additional reporting by Lane Kelley

By: Larry Terry
1 713 525 2653

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