27 September 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--Producers of butyl acetate (butac) are targeting October price hikes of €35-100/tonne, they said this week.
The aim is to repair the damage done to margins by an inability to pass on the full increase of feedstock costs during the last two months.
The August propylene contract price (CP) increased by €50/tonne ($68/tonne). There was a further €60/tonne hike in September.
“We announced an increase of €100/tonne for October,” one etac producer said. Demand is absolutely strong, in the summer and September. Raw material prices went up during the last two months. Butac prices are not moving up at the same rate. We cannot accept this any longer.”
A second producer said: “Raw material costs increased, margins are terrible. Our task is to increase prices.”
This source is also seeking an increase of €100/tonne.
These targets are despite expectations of little change in the October monomer contract price.
Early indications for the October propylene CP vary from a small increase to a small decrease.
($1 = €0.74)
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