18 December 2012 18:39 [Source: ICIS news]
HOUSTON (ICIS)--US butyl acetate (butac) buyers expect increases in January, based on the latest producer nominations issued last week and rising prices for feedstock propylene, buyers said on Tuesday.
Late last week, two producers issued proposals to raise butac prices by 5 cents/lb ($110 tonne, €84/tonne) on 1 January 2013.
Eastman Chemical attributed its nomination to increased market demand and operating costs, “particularly in raw materials”.
Oxea offered no explanation for its nomination.
Buyers said Dow had issued a similar proposal, but it was not available on the company’s website.
A butac buyer said the nominations had sparked some interest, though he had not purchased any material yet.
“We’re actively bidding, though,” he said.
A distributor said nothing has changed in demand and that butac remains a feedstock-driven petrochemical.
Chemical-grade (CGP) material jumped almost 3% last week, from an average of 55.25 cents/lb to 56.75 cents lb now.
“That’s the only thing I can put my finger on,” the distributor said, referring to the nominations.
US butac distributor prices, the most popular price range, remained stable at 86-89 cents/lb.
Butac distributor prices rose earlier this month by 3 cents/lb, also related to propylene hikes.
($1 = €0.76)
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