26 February 2010 12:14 [Source: ICIS news]
LONDON (ICIS news)--Two European producers of butyl acetate (butac) have posted increases of €50-70/tonne ($68-95/tonne) for March, buyers and sellers confirmed on Friday.
“We have no choice, we need to pass through the costs from propylene and butanol,” one producer said.
Another manufacturer added: “We have to fight for feedstock, and if margins are poor we don’t get it.”
Butanol, one of the key feedstocks of butyl acetate, has had to absorb another price increase from its feedstock propylene. Propylene settled for March on Tuesday at €910/tonne FD (free delivered) NWE (northwest Europe), up €35/tonne from February.
Spot prices for butyl acetate were currently assessed around €880-920/tonne FD NWE, according to data from global chemical market intelligence service ICIS pricing.
Buyers were not convinced that the full initiative could be absorbed and several distributors were still waiting for new offers for March from suppliers.
“We all know there is a cost issue, but the fact is downstream demand to the automotive industry is still poor,” one buyer said.
Another customer said: “I expect a proportion of the increase might be successful, but I can’t pass it on downstream.”
($1 = €0.74)
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