03 April 2012 19:45 [Source: ICIS news]
US butac buyers said the popular butac distributor price had risen to 105-107 cents/lb ($2,315/tonne-2,359/tonne, €1,736-1,769/tonne) from the previous 100–102 cents/lb.
Buyers said the hike was mostly driven by the rise in cost of a major feedstock.
“Propylene has been pushing lots of products up,” the buyer said. “Blame propylene.”
US butac distributor and spot prices peaked in June 2011 and moved lower until earlier this year, when higher alkylation values, refinery turnarounds and a busy cracker maintenance season began raising propylene prices.
Butac – a major ingredient in automotive paint – rose by 9–10 cents/lb across the board in March.
The spot price of major butac feedstock chemical-grade propylene (CGP) has increased by 38% in 2012.
Two major butac producers, Oxea Group and Eastman Chemical, have each issued increases this year totalling 20 cents/lb. The ICIS distributor price has risen by 19 cents/lb this year or by almost 22%.
Eastman’s release on the April increase said it was because of “increased market demand and operating costs, particularly in raw materials and energy.”
Oxea gave no reason for its proposed increase.
($1 = €0.75)
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections