LONDON (ICIS)--European acrylic acid (AA) contract talks for November have started,with rollover targets heard so far from sellers, despite the lower feedstock costs.
Propylene settled at a €10/tonne decrease for November, but ongoing production issues in the market may prevent any pricing drops from AA contracts.
The force majeure for BASF on acrylate esters continues, which is having a tightening impact on supply for some esters in particular.
This has the potential to cause some length in the AA market in the Antwerp area, with BASF moving AA from Antwerp to Ludwigshafen for ester production under normal circumstances.
Water levels on the Rhine remain critically low, with some players covering requirements into 2019 amid fears of longer term production/logistic constraints.
November contract talks will continue for the next few weeks, with feedstock prices, supply and demand all impacting discussions.
Spot prices remain stable, with supply balanced and demand healthy for the period of year.
Acrylic acid is used as a raw material to make superabsorbent polymers (SAP) for the manufacture of disposable diapers, surgical pads and other personal care items.