US December acrylates contracts settle late, flat

08 January 2014 20:26 Source:ICIS News

HOUSTON (ICIS)--US December acrylates contracts settled broadly flat despite some mild downward November pressure from feedstock propylene, sources said on Wednesday.

Although feedstock chemical-propylene (CGP) weakened by 1 cent/lb ($22/tonne) in November, producers and most buyers said acrylates contract values were steady for December. One buyer said it did receive a 1 cent/lb reduction for one of the products.

Settlements were confirmed later than usual, however, because of market inactivity during the Christmas and New Year’s holidays.

The rollovers held December glacial acrylic acid (GAA) freely negotiated contract values in a range of $1.08-1.12/lb, as assessed by ICIS, for most US small- to medium-volume customers.

In the meantime, prices are anticipated higher in January on December feedstock pressure, but buyers question the strength of demand this early in the year, and therefore the likelihood of a full upward settlement of 4 cents/lb as proposed.

Major US acrylates producers include Dow Chemical, Arkema and BASF.

By Larry Terry