30 July 2013 22:11 [Source: ICIS news]
HOUSTON (ICIS)--US butyl acetate (butac) prices for July rolled over from June, despite sentiment earlier in the month that price nominations by Oxea Chemical and Eastman Chemical would gain traction, sources said on Tuesday.
Prices for butyl acetate have remained flat for the last few months, despite increases in propylene prices and an increase in sales in the automotive sector. Butyl acetate is used in the coatings and automotive industries.
Both Oxea and Eastman proposed increases of 3 cent/lb ($66/tonne, €50/tonne) for July. Sources said on 30 July that those increases had been rescinded.
The overall butyl acetate market in the US has been up and down. In June, one producer indicated that demand for butac was up year on year. The producer did not give a specific percentage increase.
Other sources have said they are not seeing evidence of strong demand.
In Europe, the traditional summer slow season has led to flat demand. In addition, higher crude and naphtha prices have left butac margins compressed. Market participants in that region are awaiting the August contract price settlement for propylene.
In Asia, spot butac prices remain unchanged, and prices in southeast Asia were described as stable-to-soft.
($1 = €0.75)
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