A second US acrylates producer seeks July increases

20 June 2013 23:37  [Source: ICIS news]

HOUSTON (ICIS)--A second US acrylic acid and acrylate esters producer announced on Thursday its intent to increase its July contract prices, citing higher raw materials costs.

BASF said in a price letter to customers that it plans to boost prices by 3 cents/lb ($66/tonne, €50/tonne), effective 1 July.

Earlier this week, Dow Chemical proposed increases of 5 cents/lb, but buyers were surprised that the initiatives exceeded the anticipated gain in June propylene feedstock.

Sources predict US June propylene talks will end in a split settlement.

A buyer and seller have each said that June polymer-grade propylene (PGP) contracts could increase by 3 cents/lb while chemical-grade propylene (CGP) contracts might increase by 2 cents/lb.

If this occurs, it would be the first split settlement since March 2011, when PGP contracts fell by 5 cents/lb and CGP contracts fell by 1 cent/lb.

Glacial acrylic acid (GAA) prices for May were in a range of $1.08-$1.12/lb, as assessed by ICIS.

Buyers remained sceptical that the July efforts would succeed, insisting that the price efforts would be counterbalanced by ongoing soft market conditions including ample supply and delayed seasonal demand.

In the meantime, June acrylates contracts appeared likely to settle at rollovers based on minimal movement in May chemical-grade propylene (CGP) contract values.

US acrylates producers include Dow, Arkema and BASF.

($1 = €0.75)

By: Larry Terry
1 713 525 2653

AddThis Social Bookmark Button

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.

Printer Friendly