Soft demand, highly competitive spot offers, general bearish sentiment weigh on European acrylate prices; most European contracts for November BA settling at about €1,800-€1,900/tonne
November 21, 2011
– Soft demand and aggressive spot market offers are weighing on acrylate prices in Europe, ICIS news reported Nov. 21, citing sources.
A drop in feedstock propylene prices in November of €55 per tonne (US$74/tonne) has also weighed on the market, but insiders generally agreed that the main driver is the confluence of soft demand and low spot prices.
Some market sources told ICIS that material from Russia was the key factor in pushing prices lower. Other market players, however, felt that the general air of caution in the market was forcing them to turn to inventories, which in turn is causing prices to fall, especially for ethyl acrylate and butyl acrylate. One European producer described current spot prices as “disastrous.” The same producer predicted that as a result, contract prices for November would be in a wide range.
Most European contracts for BA are settling at about €1,800-€1,900/tonne, ICIS reported.
ICIS noted that January typically sees an uptick in buying activity due to the need to restock, but added that 2012 could be different because of the global economic situation. A market insider told ICIS that the outlook is quite uncertain because everything is in flux and nobody wants to make predictions.
The primary source of this article is ICIS news, Sutton, England, Nov. 21, 2011.