23 May 2013 18:25 [Source: ICIS news]
HOUSTON (ICIS)--US acrylic acid and acrylate esters contract prices weakened for May on pressure from sharply lower April feedstock values and soft demand, sources confirmed on Thursday.
May prices dropped by an average of 7 cents/lb ($154/tonne, €120/tonne), taking glacial acrylic acid (GAA) prices, for example, to a new range of $1.08-1.12/tonne, as assessed by ICIS.
Typical spring coatings demand has been slow to surface because of persistent cold, wet or otherwise inclement weather in the northeast and in other regions.
But sources said a demand uptick is imminent.
“Although demand has been down on weather delays, the storm damage will compensate for that,” a source said.
Current demand is mostly flat, but some sources said they were grateful even for that, given the delayed spring demand this year.
April acrylates previously softened on March propylene declines.
Spot export values were being pressured upward by some suppliers, sources said, but no deals were confirmed yet.
Downstream, an index indicating future US construction activity shifted into negative territory for April after eight months in positive terrain, the American Institute of Architects (AIA) said on Wednesday, citing project-approval delays and credit constraints as primary reasons for the downtrend.
In Europe, acrylates demand was said to have increased recently, but is still below year-ago levels largely on concerns about the eurozone debt crisis and – as in the US – the delayed spring due to colder, wetter weather.
US acrylates producers include Arkema, Dow Chemical and BASF.
($1 = €0.78)
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