08 January 2013 23:00 [Source: ICIS news]
Butac distributor prices, the most popular range, rose to 88-91 cents/lb from the previous 86-89 cents/lb, sources said.
Spot and contract prices remained unchanged at 76-80 cents/lb and 81-84 cents/lb, respectively.
This increase and one in early December both stem from jumps in feedstock US propylene. Spot chemical-grade propylene (CGP) has shot up by 18% in the past week, to 66.75 cents/lb from an average of 56.75 cents/lb late last year. Prices have been pushed up by a continued outage at an on-purpose propylene plant in Texas, market sources said.
“Propylene’s just going crazy,” said a butac source.
Producers Eastman Chemical and Oxea issued nominations to raise butac by 5 cents/lb on 1 January, with Eastman attributing its proposal to increased demand and higher feedstock costs.
Sources said Dow also issued an increase, but it was not available on the company’s website.
Major US butac producers include Dow Chemical, Eastman Chemical and Oxea.
($1 = €0.76)
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