29 December 2009 09:15 [Source: ICIS news]
By Helen Lee
SINGAPORE (ICIS news)--Asia’s butyl acetate (butac) solvent market is poised for a recovery in the second half of 2010, fuelled by robust growth in China and an improving US property market, producers said on Tuesday.
Margins in 2009 were wiped out as demand for the solvent from the downstream wood coatings and automotive paints sector had disappeared after the global economic downturn.
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Operating rates at Asian butyl acetate plants were expected to rise to above 50% of capacity in 2010, from the average of 30-50% in 2009, market players said.
“Supply is always there so it still boils down to demand,” the producer said, adding that major producers in southeast Asia had been operating at half the capacities in 2009 as they could not find markets to export their cargoes after meeting domestic demand.
Producers also expected spreads between n-butanol feedstock and butyl acetate prices to hover above $50/tonne (€35/tonne) next year, although n-butanol costs were expected to remain high going into 2010 on the back of firm upstream propylene values.
“Currently the spread between butyl acetate and n-butanol is still not very healthy here in
The seller added that it was currently targeting the
Offers for bulk cargoes to
On the other hand, the availability of competitively-priced butyl acetate cargoes from
($1 = €0.70)
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