10 July 2013 17:53 [Source: ICIS news]
LONDON (ICIS)--European butyl acrylate (butyl-A) July contract negotiations are underway, with prices set to rise on tight supply, sources said on Wednesday.
Butyl-A contract prices for July are being agreed at higher levels compared with June, buyers and sellers said.
Supply tightened following the force majeure declaration on butyl-A by BASF on 13 June, because of unplanned production problems at its Ludwigshafen facility in Germany. The force majeure was lifted later in June, and sales control remains in place until further notice.
Demand for acrylate esters is steady, but obtaining butyl-A for prompt delivery is a challenge. While players said the rush for material has calmed, most expect that sourcing butyl-A for the next few weeks will remain difficult.
Some participants think it likely that supply will ease in August when demand should soften on summer holiday absences, but a couple of suppliers said the shortage would affect the market into next month.
Butyl-A spot prices are steady this week at €1,580-1,650/tonne ($2,026-2,115/tonne) FD (free delivered), amid limited trade. Prices are at their highest since June 2012.
Negotiations are expected to conclude next week.
($1 = €0.78)
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