30 January 2012 15:33 [Source: ICIS news]
LONDON (ICIS)--Germany-based chemical producer Oxea has announced a €100/tonne ($132/tonne) increase for its butyl acetate (butac) offers in Europe, the company said on Monday.
The higher offers would be effective from 1 February, Oxea said in a statement without specifying the reason behind the rise.
The company was unavailable for comment at the time of writing.
Butac prices were assessed stable at €990–1,050/tonne FD (free delivered) NWE (northwest Europe) on Friday 27 January.
The European feedstock propylene contract price for February was fully confirmed up by €90/tonne at €1,105/tonne FD NWE on Friday.
Industry sources said that other butac suppliers are aiming for an increase of €30–40/tonne for February following the propylene settlement.
"I'm in the middle of the negotiations, €100/tonne seems too much to me. An increase of €40/tonne seems more reasonable, as demand is still not high. On top of this, there are lots of imports from Russia, so availability is good," said a butac buyer.
A butac distributor said: "I think it is nonsense. It is always good to send a message out into the world. I believe butac should see an increase, but possibly by €30–40/tonne. Demand is not great, the market is not great."
Butac prices have been stable to soft in January because of slow demand, despite the €20/tonne increase in the propylene price for the month.
Other major producers of butac in northwest Europe include INEOS and BASF.
($1 = €0.76)
For more on butac visit ICIS chemical intelligence
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections