03 May 2011 20:29 [Source: ICIS news]
HOUSTON (ICIS)--US butyl acetate (butac) jumped about 4 cents/lb ($88/tonne, €59/tonne) across all ranges as the market appeared to accept much of producers’ proposals for May, based on higher propylene costs, buyers said on Tuesday.
US butac distributor prices, the most representative value, rose to 101-107 cents/lb, compared with the previous range of 99-102 cents/lb, sources said.
Contract prices were 97-100 cents/lb and spot free on board (FOB) rates were 93-96 cents/lb, sources said.
Oxea and Eastman Chemical announced 6 cent/lb hikes for 1 May. Dow Chemical also was heard to be seeking the same amount, though the company did not post an announcement on its website.
Those three companies are the major US butac producers.
A distributor attributed much of the butac increase to the recent run-up in feedstock US propylene. The contract price for chemical-grade propylene (CGP) has jumped 19% since early February, from 72 cents/lb to 86 cents/lb.
“Things are becoming volatile on the basis of the record propylene numbers,” a butac source said.
In addition, one producer had plant issues.
Oxea last week put its butac and butanol customers on 100% sales allocation for May and June because of a boiler problem at its Bay City plant in Texas, a distributor said.
($1 = €0.67)
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