US October maleic anhydride contracts set for 2 cent/lb increase

01 October 2013 21:29  [Source: ICIS news]

HOUSTON (ICIS)--US October maleic anhydride (MA) contract are expected to rise slightly on higher feedstock costs, sources said on Tuesday.

Sources said most producers have separately nominated an increase of 4 cents/lb ($88/tonne, €65/tonne) or 5 cents/lb, citing higher feedstock costs for butane.

US butane prices surged in the second quarter, tracking global energy futures and peaking in late August.

Since then, prices have fallen on the retreat in global energy futures, although prices rebounded on 1 October.

“Butane slowed down a bit recently, and no one expects it to come back up,” an MA buyer said.

This recent slight decline in butane has pushed buyers to push for October MA contract increases to be capped at 2 cents/lb.

The buyer added that some purchasers might receive a rollover, but most of the market will take the slight increase.

Other buyers said they would aggressively push for a rollover, arguing that supply concerns from the first two quarters have eased and that demand levels don’t support higher prices.

Major US MA producers include Ashland, Flint Hills Resources, Huntsman and LANXESS.

($1 = €0.74)

By: John Dietrich

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