US December maleic anhydride contracts set to roll over

03 December 2013 22:49 Source:ICIS News

HOUSTON (ICIS)--US December contracts for maleic anhydride (MA) are expected to roll over, sources said on Tuesday.

Some buyers and sellers confirmed that they have settled at a rollover, while others said negotiations are ongoing.

A full rollover for December contracts would put US MA contract prices at 79.7-85.7 cents/lb ($1,757-1,889/tonne, €1,300-1,398/tonne) for molten material on an FOB (free on board) basis.

Sources said the December rollover is gaining momentum because feedstock butane prices have dipped slightly.

“If butane prices had come down more, we might have knocked a cent off the December contract,” a buyer said.

A producer disagreed, saying that MA supply remains snug, keeping a floor on prices for now.

Buyers and sellers said that MA demand is soft, especially from the unsaturated polyester resin (UPR) market, but attributed it to seasonal factors.

Major US MA producers include Ashland, Flint Hills Resources, Huntsman and LANXESS.

($1 = €0.74)

By John Dietrich