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

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index