28 January 2013 22:46 [Source: ICIS news]
HOUSTON (ICIS)--Oxea issued a sales control on butyl acetate (butac) and other products on Monday a few days ahead of big producer increases that take effect on 1 February.
Oxea said it was issuing a 100% sales control in North and South America on butac, butanol, propanol and propyl acetate until further notice.
“The sales control will be based on the average monthly consumption over the last six months or as allowed by contract,” Oxea said in the release.
Oxea did not give a reason for the move.
One buyer said it was likely designed to stop or at least limit customers from building inventory before the company’s 5 cent/lb ($110/tonne, €82/tonne) increase on butac takes effect on 1 February.
“They just don’t want people stocking up,” the buyer said.
Another butac producer, Eastman Chemical, wants to raise prices by 6 cents/lb on 1 February. Eastman’s announcement said the increase stemmed from increased market demand and operating costs, particularly in raw materials.
That reference hinted at the ongoing rise in feedstock propylene. Chemical-grade propylene (CGP) has shot up by 30% in price this month, from 56.75 cents/lb to 74.13 cents/lb, as assessed by ICIS.
Butac prices for the popular distributor range run 88-91 cents/lb. Sources expect the February increase to push values into the mid-90s.
($1 = €.74)
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