US polypropylene June contract prices fell by 14%

(ICIS) -- US polypropylene (PP) June contract prices fell by 14%, pressured by a 15 cent/lb (USD 331/tonne, EUR 235/tonne) drop in feedstock costs, market sources said on Friday.

US PP contract prices for June were assessed at 93-95 cents/lb DEL (delivered), down 15 cents/lb from May, reflecting the pass-through of lower propylene prices.

The June contract price was down from 108-110 cents/lb DEL in May, according to ICIS.

Most of the US PP market has a monomer-based contract that follows the monthly polymer grade propylene (PGP) cost. With the 15 cent/lb drop in propylene, US PGP settled at 82 cents/lb for June, pressured by loosening supply and lower spot prices in recent weeks.

Some buyers who do not use the monomer-plus pricing tried to seek greater discounts, based on market weakness, but those efforts were not successful, market sources said.

MRC

(ICIS) -- Spot purified terephthalic acid (PTA) prices in Asia may fall further after falling to a six-month low last week, on soft downstream demand and huge capacity additions in China over the next three months, industry sources said on Monday.

PTA spot prices shed USD 12-17/tonne (EUR 8-12/tonne) week on week to USD 1178-1.193/tonne CFR (cost & freight) CMP (China Main Port) on 17 June, after hovering at around USD 1.190-1.220/tonne CFR CMP for more than a month, according to ICIS.

Most market players are pessimistic about the PTA market in the third quarter with a total 2.7m tonnes/year coming on stream in China through August, amid a slowing down of demand from the downstream textile industry.

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(ICIS) -- Prices of polystyrene (PS) in the Middle East have declined during the region's peak demand season from late April to June this year, market sources said on Monday.

A trader in Jordan said the political unrest in Syria has dampened business dealings in the region, causing the poor performance of downstream businesses.

Another east Mediterranean-based trader said the polymers market has weakened, which is causing the market to become bearish. Buyers are withholding their bids, forcing PS producers and/or sellers to reduce their offers.

Cargoes of general purpose PS (GPPS) for loading in June were heard to be traded at USD 1.590-1.630/tonne (EUR 1.113-1.141/tonne) CFR (cost & freight) east Mediterranean (MED)/Gulf Cooperation Council (GCC) on 17 June, while those in the Iranian market were assessed at USD 1.550-1.600/tonne CFR Iran 17 June because of lower buying and selling indications, according to ICIS.

Small parcels of high impact PS (HIPS) for delivery in June were heard to be traded at USD 1.800-1.850/tonne CFR east MED/GCC. The prices of HIPS in Iran were assessed at USD 1.740-1.800/tonne CFR Iran on 17 June because of lower buying and selling indications.

MRC

(BASF) -- Effective today, June 20, 2011, or as contracts allow, BASF will increase prices in Europe, Africa and Western Asia for polymer dispersions as well as additives by EUR 85 per metric ton and acrylic resins and redispersible powders by EUR 140 per metric ton. This price increase is necessary due to continuingly high costs of raw materials and freight.

The products affected by the price increase are used as polymers for adhesives, fiberbonding , architectural coatings and construction chemicals.

BASF is the world's leading chemical company. Its portfolio ranges from chemicals, plastics, performance products and agricultural products to oil and gas. BASF posted sales of about EUR 63.9 billion in 2010 and had approximately 109.000 employees as of the end of the year.

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(ICIS) -- AkzoNobel will invest EUR 140m (USD 200m) in new membrane electrolysis technology to upgrade its 165 KTa chlorine plant in Frankfurt, Germany, the Dutch paints and coatings company said on Monday. The plant's capacity is expected to be raised to 250 KTa and the upgraded plant will come on stream in the fourth quarter of 2013, the company said in a statement. The upgrading work has already begun, according to a company official.

The company operates three chlorine plants in Germany and two in the Netherlands through its subsidiary AkzoNobel Industrial Chemicals, the company said. These facilities ⌠exceeded 1m tonnes in total production last year, it added.

Chlorine is used in the production of polyvinyl chloride (PVC), epoxy resins and polyurethane (PU). It is also commonly used in the manufacture of pharmaceuticals, according to AkzoNobel.

MRC