05 November 2013 23:05 [Source: ICIS news]
HOUSTON (ICIS)--US November maleic anhydride (MA) contracts are expected to roll over, sources said on Monday, but could see a slight increase.
Buyers said that the only thing that could support a November increase would be steadily higher feedstock butane prices.
However, butane prices have shed 14 cents/gal in the past two weeks on declining energy futures.
“The broader petrochemical market is showing weakness,” an MA buyer said. “For MA to increase now would be out of step with that.”
Producers are pushing for an increase of 1-2 cents/lb ($22-44/tonne, €16-33/tonne) as butane prices are still strong.
Market players agreed that the peak demand season for MA has passed and that demand will continue to wind down until early 2014 at the earliest.
Supply is also balanced in the market, sources said, which could lend credibility to a rollover.
Major US MA producers include Ashland, Flint Hills Resources, Huntsman and LANXESS.
($1 = €0.74)
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