Europe AA market stagnant as it awaits C3 September settlement

27 August 2014 23:59 Source:ICIS News

LONDON (ICIS)--The European acrylic acid (AA) market is in a 'wait-and-see' mode this week as the majority of players are standing by for the upstream propylene (C3) contract settlement for September, sources said on Wednesday.

Most players expect to see a decrease in propylene costs – but the question remains how much – and buyers and traders said this could translate to the AA market to some degree, particularly as supply and demand fundamentals are soft.

However, this remains to be seen as discussions are not yet fully under way.

With a lot of AA players still on summer holidays, sources are also delaying transactions until participants are back in the market.

Activity is expected to pick up slightly in September, but it is deemed quite unlikely that it will be sufficient to impact the ample availability sufficiently to increase price levels.

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By Helena Strathearn