20 November 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European November acrylic acid (AA) contract prices have fallen by €20-30/tonne ($27-41/tonne) from October, on lower feedstock costs, sources said on Wednesday.
Contract prices are at €1,850-1,870/tonne FD (free delivered) NWE (northwest Europe).
The November feedstock propylene contract price fell by €30/tonne.
AA spot prices have come down by €30-40/tonne since mid-October because of lower demand in a well-supplied market. The range is at €1,470-1,500/tonne FD NWE.
“Demand is continuing at a normal level for November, similar to last year,” one producer said. “Pressure on pricing is coming from the drop in propylene.”
A buyer said: “Additionally, more volumes are available with all production and allocation issues solved.”
Arkema lifted the force majeure in place on AA and butyl acrylate (butyl-A) from its Carling facility in France in October, and operations are back to normal. The producer had declared force majeure earlier in October because of a mechanical failure.
Another producer said its October demand had been strong, and that its November demand was good.
December offtake is expected to soften as is usual for the end of the year when players destock.
November AA contract prices in 2012 were at €1,880-1,910/tonne FD NWE.
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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($1 = €0.74)
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