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