07 June 2011 23:36 [Source: ICIS news]
HOUSTON (ICIS)--North American butanediol (BDO) producers have nominated third-quarter price increases because of tight global supply and strong derivative demand, sources said on Tuesday.
International Specialty Products (ISP) announced price increase initiatives of 12 cents/lb ($265/tonne, €183/tonne), effective on 1 July or as contracts allow, and initiatives on BDO derivative tetrahydrofuran (THF) of 18 cents/lb.
BASF made a similar announcement. It is seeking a BDO price increase of 12 cents/lb, effective on 1 July, which would apply to gamma-butyrolactone (GBL) and N-methlpyrroidone, as well as a price increase on THF of 18 cents/lb.
The BASF nominations come after the company declared force majeure on BDO from its site in Ludwigshafen, Germany, which produces 190,000 tonnes/year, following a fire on 30 May.
One North American BDO buyer expected producers to come out with a 7 cent/lb price increase before the BASF force majeure.
The buyer added that the 12 cent/lb increase will likely go through because of the global tight supply and demand picture, especially in light of BASF’s force majeure.
Current second-quarter BDO contract prices are at 138–152 cent/lb, as assessed by ICIS.
($1 = €0.69)
For more information on BDO visit ICIS chemical intelligence
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