US February acrylates proposed higher on feedstock

23 January 2014 21:57  [Source: ICIS news]

HOUSTON (ICIS)--US February acrylates contract prices this week were proposed higher by up to 5 cents/lb ($88-110/tonne), effective 1 February, on feedstock pressure, sources said on Thursday.

Dow Chemical was the only producer that did not cite a specific reason for its proposed increases of 4 cents/lb for glacial acrylic acid (GAA) and the acrylate esters.

BASF is seeking gains of 3 cents//lb, and Arkema, which was the first seller to announce, intends to increase the price of its products by 4 cents/lb, except for 2-ethylhexyl acrylate (2-EHA), for which it is seeking a 5 cents/lb increase, according to price letters sent to customers.

Primary feedstock chemical grade propylene (CGP) contracts increased by 4 cents/lb for January, tracking tight supply and stronger-than-expected demand.

CGP prices for December also increased by 4 cents/lb, prompting similar January acrylates price-hike proposals.

A consensus on January acrylates contract-price movement was still elusive, however, with some buyers taking 3 cents/lb, while a couple of others took no increase for January. One large-volume buyer said it saw flat-to-weaker January contract prices.

Market sources had expected January pricing to settle late in the month.

December acrylates previously settled flat.

Market supply remained plentiful amid lacklustre demand, sources said.

The spring 2014 coatings season is widely expected to exceed comparatively soft demand in 2013, but some sources said it may only improve by single-digit percentages.

If the January contract settles broadly up by 3 cents/lb, the new GAA range would be $1.11-1.15/lb, as assessed by ICIS.

Major US producers include Dow, Arkema and BASF.

By: Larry Terry
1 713 525 2653

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