Dow Texas butanol unit on turnaround - sources

08 April 2010 22:47  [Source: ICIS news]

HOUSTON (ICISnews)--Dow Chemical's US butanol plant in Texas City has shut down for planned maintenance turnarounds, market sources said on Thursday.

Buyers and sellers of US butyl acetate (butac) reported that the plant was down for maintenance but did not have stop and start dates. Butanol is a major butac feedstock.

Dow did not immediately confirm the shutdown.

A butac seller said Dow's turnaround at Texas City and one announced for later this month at Oxea's Bay City, Texas, butac plant already had increased demand and reduced supplies.

The seller described butac demand currently as "very good."

A buyer said Dow's maintenance in Texas City was part of a tightening going on throughout the butyl chain. "All the derivatives are under pressure," the buyer said.

The buyer added that the shutdown also was impacting Dow's acrylates business as well.

Oxea this week issued its fourth price increase proposal for US butac in as many months, seeking another 5-cent lb raise in May, according to the company.

Market sources attributed the nomination to the huge run-up in feedstock propylene and to higher demand for derivative products.

Major US butac producers include Dow, Oxea and Eastman Chemical .

($1 = €0.75)

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By: Lane Kelley
+1 713 525 2653

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