US butac prices roll over for Aug; increases possible for Sept

03 September 2013 21:58  [Source: ICIS news]

HOUSTON (ICIS)--Prices for US butyl acetate (butac) rolled over for August, sources said on Tuesday, but proposed price increase nominations by several producers could find traction later in the month.

Oxea, Dow and Eastman each announced in August 3 cents/lb ($66/tonne, €50/tonne) price increase nominations for butac for September, citing higher prices in feedstock propylene. August propylene contract prices settled at a 5 cent/lb ($110/tonne) increase.

“There’s a lot of demand for butyl acetate,” one source said. “Propylene prices have gone up, and the paints and coatings industry is still pushing a lot of the demand.”

That sentiment follows news on Tuesday that the US construction industry in July saw its largest gain in four years. About $901bn (€685bn) in construction was started last month, the highest mark since July 2009, according to an analysis of Census Bureau data by the Associated General Contractors of Americas (AGC). Construction increased by 0.6% in July from May and 5.2% from July 2012, the AGC said.

Several sources said on Tuesday that butyl acetate buyers were likely trying to pre-buy at lower rates before the possible price increases. That’s risky, however, as no one wants to get stuck with too much supply if the market stalls, a distributor said.

Butyl acetate contract prices rolled over at a range of 84.00-87.00 cents/lb. Contract prices remained at a range of 82.00-85.00 cents/lb.

($1 = €0.76)

By: Andrew Guy Jr
+1 713 525 2653

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