08 February 2013 23:06 [Source: ICIS news]
HOUSTON (ICIS)--A second-round of US February isopropanol (IPA) price-hike initiative of 5 cents/lb ($110/tonne, €83/tonne) will likely face little opposition, sources said on Friday.
In its price letter, producer ExxonMobil cited sustained feedstock cost escalation as the primary driver for the increase, effective on 20 February.
In the meantime, sources said earlier proposed increases of 5 cents/lb continued to be implemented with little or no pushback as buyers acknowledge upstream pressure from primary feedstock chemical-grade propylene (CGP).
IPA supply also remains tight on sustained production issues, and widespread allocations remain in effect.
The January IPA contract range is 85-90 cents/lb DEL (delivered), as assessed by ICIS.
US February propylene contract-price initiatives of plus 7 and 9 cents/lb were still being negotiated on Friday, sources said, following a 15 cent/lb increase in the January propylene contract.
On the US truck acetone front, February prices are expected to rise on continued tight supply. Producers and distributors have nominated increases of 5-6 cents/lb, and buyers expect those to find traction in view of added pressure from propylene.
US IPA suppliers include Shell Chemical, LyondellBasell, ExxonMobil, Haltermann and Sasol.
($1 = €0.75)
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