23 August 2013 09:34 [Source: ICB]
European August acrylate esters contract prices have risen from the previous month, on higher feedstock costs, sources said on 14 August.
Methyl acrylate (methyl-A) and ethyl acrylate (ethyl-A) contract prices rose by €10/tonne ($13/tonne) to €1,760-1,820/tonne FD (free delivered) NWE (northwest Europe) and €1,890-1,910/tonne FD NWE respectively.
August butyl-A contract prices increased by €30-40/tonne to €1,880-1,910/tonne FD NWE, because of tight supply and higher raw material costs. 2-ethyl hexyl acrylate (2-EHA) contract prices rose by €10-20/tonne to settle at €2,080-2,100/tonne FD NWE.
Butyl-A supply is limited, owing to the sales control in place at BASF's 110,000 tonne/year Ludwigshafen facility in Germany.
Dow Chemical expects to resume production at its acrylic acid (AA) plant in Boehlen, Germany, within the next few days. The outage will also impact its butyl-A production. Dow has an AA capacity of 80,000 tonnes/year and can produce 40,000 tonnes/year of butyl-A from its Boehlen facility in Saxony.
The August feedstock propylene contract price rose by €50/tonne.
Following healthy demand in July, August buying interest has softened slightly amid holiday absences and plant maintenances.
However, demand is good, boosted by warm weather, and as players react to improved end-use buying interest.
"August demand is fairly good, and in line with July," a buyer said. "We expected a slight decrease, but there was no severe fall with seasonality. I think after the long period of lousy weather, the market caught up and consumption increased in a small amount of time. People are going into the DIY market."
The buyer added that the pick-up in demand is not sufficient to compensate for the slow demand seen at the beginning of the year.
"It's August, and we're seeing good volumes," a producer said. "August is pretty much where it was last year. Demand in July was incredible, very strong, there has been a slight dip. Make hay while the sun shines, as they say."
AA and its esters are used in the manufacture of various plastics, coatings, adhesives and elastomers, as well as floor polishes and paints.
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