02 October 2013 20:50 [Source: ICIS news]
HOUSTON (ICIS)--A producer of US butyl acetate (butac) said on Wednesday that demand for butac remains strong and that increased costs in raw materials justify price increases.
The source indicated that September increases made by several butac producers have gone through in the market. However, ICIS could not confirm that information, and prices remain at current rates.
The source also said that it’s too early to tell if October increases will go through.
“[The September] increase was not hard to get through,” the source said. “We’re pretty much pushing all of those increases through the market. I have not heard of any other suppliers backing off from it.”
The source disputed reports from earlier this week, in which sources indicated that September butac price nominations had failed and that October increases were receiving push back as well.
ICIS-assessed US butac prices rolled over for the month.
Overall sentiment in the butac market the last several weeks has been that prices would likely increase due to increased propylene costs.
Propylene prices have flattened somewhat, but the butac source said on Wednesday that demand remains strong.
“It’s hitting on all cylinders right now,” the source said of the butac market. “[The cost of] raw materials is going up, demand is strong and going up, and things are looking good. It’s too early to tell for October, but we think we have a chance to see some increases.”
Current assessed butyl acetate prices are 84-87 cents/lb ($1,852-1,918/tonne, €1,305-1,419/tonne) for contract, 86-90 cents/lb for distributor and 82-85 cents/lb for spot.
($1 = €0.74)
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