20 December 2013 16:33 [Source: ICIS news]
HOUSTON (ICIS)--US January acrylic acid and acrylates esters price-hike proposals of 4 cents/lb ($88/tonne, €64/tonne) may be too high a reach by producers, some buyers said on Friday.
Dow and Arkema each proposed those increases effective 1 January, without citing specific reasons. Market consensus is that the moves are based on feedstock pressure.
No proposed increase for January had yet surfaced from a third major producer.
“December propylene went up by 4 cents/lb, and about 80% of that hits the acrylates, though some producers say as much as 90%,” said one buyer who believes a gain of 3 cents/lb is more appropriate.
The 4 cent/lb proposal “is not unreasonable as far as feedstock prices go”, the source said, "but if January demand doesn't go crazy, then the increase could be tempered, although I think that might be unlikely.”
US acrylates pricing has been largely flat since the May contract was assessed, and most sources believe December pricing will be flat to marginally weaker, given ample supply and seasonally soft demand.
Major US producers include Dow Chemical, Arkema and BASF.
($1 = €0.73)
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