US June oxo-alcohol prices fall 4% on lower feedstock

11 June 2012 16:04  [Source: ICIS news]

HOUSTON (ICIS)--US contract prices for n-butanol decreased by about 4% in June from the prior month because of lower feedstock costs, market sources said on Monday.

June contract prices for butanol have been assessed in a range of 102-107 cents/lb ($2,249-2,359/tonne, €1,799-1,887/tonne) DEL (delivered) before discounts, down from the May assessment of 106-111 cents/lb as sellers reacted to sinking prices for feedstock propylene.

June contract prices for isobutanol were assessed lower by 4 cents/lb from May while prices for 2-ethylhexanol (2-EH) remained unchanged, according to ICIS pricing.

Traders said that further oxo-alcohol price declines are expected mid-month as producers scramble to keep pace with declining prices for feedstock propylene.

US polymer-grade propylene (PGP) contracts for June fell last week by 15.50 cents/lb from May to hit a 30-month low.

June PGP contracts settled at 52 cents/lb, a drop of roughly 23% from May and the lowest level since 49.50 cents/lb in November 2009.

The reduction, which put chemical-grade propylene (CGP) at 50.50 cents/lb, was the second in as many months as the US contract shed 10 cents/lb in May.

($1 = €0.80)

By: Frank Zaworski
+1 713 525 2653

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