05 February 2013 19:30 [Source: ICIS news]
HOUSTON (ICIS)--US butyl acetate (butac) rose 2 cents/lb ($44/tonne, €33/tonne) across all ranges during the first week of February on continued gains in feedstock propylene and sales controls by two producers, sources said on Tuesday.
The popular butac distributor range rose up to 90-93 cents/lb from the previous 88-91 cents/lb. Spot prices rose to 78-82 cents/lb from the previous 76-80 cents/lb, and contract prices nudged up to 83-86 cents/lb from 81-84 cents/lb.
The increases follow sales control moves by producers Oxea and Eastman Chemical and price nominations that took effect on 1 February. The rise puts butac prices about where they were in mid-February 2012.
Eastman also issued a 5 cent/lb increase to take effect on 15 February, according to the company. The producer attributed the hike to increased demand and operating costs, particularly in raw materials.
A distributor said there have been more sales controls issued this year, probably because of big moves in propylene prices.
Major feedstock propylene spot prices jumped 30% in January on firm demand and tighter supply after a spree of plant outages.
“It’s unusual all the sales controls out there now,” the distributor said, adding that producers want to stop customers from stockpiling material before a big increase takes effect.
Major US butac producers include Dow Chemical, Eastman Chemical and Oxea Group.
($1 = €0.74)
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