Price and market trends: Europe June acrylates fundamentals expected to be fairly flat

European acrylic acid (AA) and acrylate esters market fundamentals of supply, demand and pricing are not expected to alter significantly in June compared with May, players said.

Availability in the market is much in line with that seen last month; buying interest is likely to stay stable; and pricing is not expected to see any dynamic change, following the €17.50/tonne increase in the cost of major feedstock propylene for June.

An increase in the June propylene price had been expected, based on the firmer feedstock market during May.

Initial expectations for June contracts point to very little move, if any, from May.

Some sources said that at the most, prices would move up in line with the cost pass-through. A few producers are seeking a premium over the cost of propylene, but a couple of buyers said that would not be likely given current fundamentals, with demand unchanged in a well-supplied market.

Following the increases in AA and acrylate esters contract prices in May, which largely surpassed the cost of propylene, most sources said there was little room in June prices for any more than the propylene cost pass-through.

Some players added that as demand could weaken going into the summer months, there could be pressure to keep prices stable.

The typical cost pass-through for the feedstock into the acrylates sector can amount to 80%, but supply and demand dynamics are also considered in price discussions.

May contract prices increased by €5-40/tonne, depending on ester and starting point. Acrylate esters include methyl acrylate (methyl-A), ethyl acrylate (ethyl-A), butyl acrylate (butyl-A) and 2-ethylhexyl acrylate (2-EHA).