20 August 2013 20:20 [Source: ICIS news]
HOUSTON (ICIS)--Despite upstream pressure on US September acrylic acid and acrylate esters contract prices, soft market conditions may not support a full increase, a buyer said on Tuesday.
Two major producers have announced plans to increase September contract values – Dow by 4 cents/lb ($88/tonne, €66/tonne) and Arkema by 5 cents/lb, the latter citing rising feedstock costs.
August chemical-grade propylene (CGP) recently settled up by 5 cents/lb for August, which typically informs September derivatives pricing.
“We’re in that delicate area,” the buyer said. “Are sellers justified in asking for it? You bet. But is the economy strong enough? I don’t think so.”
The buyer said a “concession” – or partial settlement – “would show a willingness to understand what the suppliers are going through. We’re both suffering here.”
The July range for glacial acrylic acid (GAA) is $1.08-1.12/lb, as assessed by ICIS, but August freely negotiated contract prices are expected to settle flat or slightly weaker, some sources said.
US July acrylates contract prices rolled over from June on generally soft fundamentals.
US acrylates producers include Arkema, BASF and Dow Chemical.
($1 = €0.75)
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