Dow Chemical announces 3 cent/lb hike for butac

14 August 2013 21:10  [Source: ICIS news]

HOUSTON (ICIS)--Dow Chemical announced a September price nomination for US butyl acetate (butac) on Wednesday, just one day after August propylene contract prices settled at a 5 cent/lb increase.

 

Dow announced a 3 cent/lb ($66/tonne, €50/tonne) increase for butac. The move follows a 3 cent/lb nomination made last week by Oxea Chemical.

In its announcement, Dow did not attribute reason for the price increase, but market participants believe that higher propylene costs are forcing petrochemical producers to increase rates.

Propylene is a feedstock for butyl acetate. US polymer-grade propylene (PGP) and chemical-grade propylene (CGP) contracts for August gained 5 cents/lb on Tuesday.

In addition to higher costs of feedstocks, increased demand from a rejuvenated automobile sector is also likely causing butac prices to increase, sources have said.

Current ICIS-assessed contract prices for butyl acetate are in the range of 84.00-87.00 cents/lb. Distributor prices are currently in the range of 86.00-90.00 cents/lb, while spot prices are in a range of 82.00-85.00 cents/lb.

($1 = €0.75)


By: Andrew Guy Jr
+1 713 525 2653



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