21 June 2013 20:31 [Source: ICIS news]
HOUSTON (ICIS)--A third US acrylic acid and acrylate esters producer announced on Friday that it plans to increase July contract prices, citing rising manufacturing costs.
The initiative from Arkema is the second proposal for increases of 3 cents/lb ($66/tonne, €50/tonne), effective on 1 July. BASF announced its intent to boost contract prices by 3 cents/lb for July.
Previously, Dow Chemical proposed July increases of 5 cents/lb, although customers insisted that the level of increase is unreasonable given the likely 2-3 cent/lb increase in June propylene feedstock.
A propylene 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.
Glacial acrylic acid (GAA) prices for May were in a range of $1.08-$1.12/lb, as assessed by ICIS.
Even with the major producers all seeking higher prices, buyers remained sceptical that the July efforts would succeed, citing soft market conditions including ample supply and delayed seasonal demand.
June acrylates contracts are expected to settle at rollovers based on minimal movement in May chemical-grade propylene (CGP) contract values, but some buyers are seeking reductions.
($1 = €0.76)
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