14 January 2011 18:20 [Source: ICIS news]
Correction: In the ICIS story headlined: “Buyers say propylene jump already figured into US butac pricing” dated 14 January 2010, please read in the eighth paragraph … Dow confirmed that it makes butac at the Texas City plant … instead of … the Seadrift plant …. A corrected story follows.HOUSTON (ICIS)--US butyl acetate (butac) buyers on Friday said a January propylene settlement had already been absorbed into the latest price increase.
"I think it was anticipated in the January price increase," a buyer said.
Contracts for chemical-grade propylene (CGP), a major butac feedstock, rose by 15.00 cents/lb to 74.00 cents/lb on Friday.
Butac prices rose 3-4 cents lb across the board earlier this month because of producer nominations based on the continuing surge in propylene.
More increases are expected in February, because of the propylene hike as well as a force majeure (FM) on butac and feedstock normal butanol issued by Dow Chemical on 7 January.
Dow declared the FM because of a power outage at its St Charles plant in Louisiana, a spokeswoman said.
Dow's butac and butanol are made at different plants, the spokeswoman said, adding that the FM on butanol applied to butac and other derivative products, "even though they are manufactured at different locations".
Dow confirmed that it makes butac at the Texas City plant in Texas and butanol at the St Charles site.
($1 = €0.75)
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