13 March 2013 23:59 [Source: ICIS news]
The March European propylene contract price moved up by €55/tonne ($71/tonne) from February, and gave support to producers’ targets to raise acrylates prices to improve margins in a balanced-to-long market.
Demand is weaker than most sources had expected. Offtake typically picks up in March, as activities in the construction and coatings sectors ramp up, but poor macroeconomic conditions have slowed consumption.
“Demand is not as it should be or where it should be, and the construction industry is slow,” a buyer said. “I tried for a decrease but I've been settling at a €10/tonne increase. March is not going to pick up, the weather is terrible, the spot market is very slow.”
Players said it was not clear whether demand would pick up significantly in April. Sellers are optimistic, however, that any hikes that were unachievable in March, will be pushed through next month.
April usually signifies the start of the coatings season.
March butyl acrylate (butyl-A) contracts moved up by €10/tonne on the low end at €1,830-1,860/tonne FD NWE, and 2-ethyl hexyl acrylate (2-EHA) contract prices have settled at €2,110-2,140/tonne.
($1 = €0.77)
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