08 December 2009 22:52 [Source: ICIS news]
HOUSTON (ICIS news)--Dow Chemical plans to raise prices by 3-5 cents/lb on butyl acetate (butac) and other oxygenated solvents products in North America, effective on 1 January, the company said on Tuesday.
A buyer called Dow "very optimistic" regarding the proposed butac increase of 3 cents/lb ($66/tonne, €44/tonne).
Dow also wants 3-5 cent/lb increases on n-butanol (NBA), isobutanol, 2-ethylhexanol (2-EH), methyl isobutyl ketone (MIBK), propylene glycol methyl ether, propylene glycol methyl ether acetate, ethylene glycol monobutyl ether and diethylene glycol monobutyl ether among others.
Dow attributed the price hike proposals to increased raw material costs.
US chemical-grade propylene (CGP), a feedstock for butac and many other petrochemicals, has risen by 15% since mid October, when it was priced at 45.5 cents/lb. CGP contracts for December settled at 52.50 cents/lb, sources said.
The US oxo-alcohols market, which includes butac feedstock n-butanol, has increased by a net 6-7 cents/lb since September.
US butac contract prices during the week ended 8 December were assessed at 70-74 cents/lb, with distributor prices at 75-80 cents/lb and spot free on board (FOB) prices at 64-69 cents/lb, according to global chemical market intelligence service ICIS pricing.
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