US butac distributor price drops 8% on plummeting propylene

17 October 2011 18:31  [Source: ICIS news]

US butac prices fallHOUSTON (ICIS)--US butyl acetate (butac) distributor prices fell by 8% in the past week because of plunging propylene values, buyers said on Monday.

Butac distributor prices, the main consumer range, were expected to take a big dive in October and began dropping late last week.

Sources said the range is now perched at 88-92 cents/lb ($1,940-2,028/tonne, €1,397-1,460/tonne), compared with the previous 96-100 cents/lb.

“It took awhile for a few folks to realise the downstream derivative affect,” a distributor said.

The new average distributor price of 90 cents/lb is 8 cents/lb lower than the previous average of 98 cents/lb.

The butac drop follows that of spot feedstock US chemical-grade propylene, which has sunk 31% since late August on soft demand and ample supply, sources said.

Butac producers tried to raise prices in September but the market rejected the proposals. Germany-based Oxea even floated a proposed increase for October but it gained no support.

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

($1 = €0.72)

By: Lane Kelley
+1 713 525 2653

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