05 April 2013 17:50 [Source: ICIS news]
LONDON (ICIS)--Spot prices for European butyl acetate (butac) are assessed stable this week, with several producers still aiming to roll over their March prices into April, sources said on Friday.
This is despite last week's settlement of the April propylene contract price - at €1,105/tonne ($1,435/tonne) FD NWE, down by €50/tonne from March - which led some buyers to expect a softening of butac values.
However, producers cite squeezed margins, reasonable demand and the forthcoming turnaround season, which may tighten supplies, as justification for holding offers steady
“We’re still hoping for rollover”, a producer said. “We talked to our main customers, as we cannot afford to go down with prices. Margins are terrible. At the moement orders are coming in at a rollover level. Buyers are accepting so far.”
A second producer said: “Prices are stable for isobutyl and butyl acetate. Raw material costs are still very expensive, and demand has not increased.”
“[We have] an excellent order entry, quite normal demand,” a third producer said. “Regarding prices, there’s pressure from customers wanting lower prices. They're a little bit successful. One producer reduced its prices, whereas as another three are aiming for rollover. We are aiming for a rollover.”
It is thought that a clearer picture of buyers’ reponses will emerge next week when more participants are back at their desks following the Easter holiday.
($1 = €0.77)
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections