Germany's Oxea announces €100/tonne hike for Europe Feb butac

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

By: Cuckoo James
+44 (0) 208 652 3214

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