04 October 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European butac prices are assessed up €20-30/tonne this week following producers targeting October price hikes of €35-100/tonne ($48-137/tonne).
While the October contract price of feedstock propylene settled at a decrease of €40/tonne from September, butac producers were nevertheless keen to repair margins damaged by an inability to pass on increased feedstock costs of €110/tonne during August and September.
Some butac producers say they have achieved increases of €50-80/tonne.
“We definitely achieved an increase for October, €1080/tonne [is our] minimum,” one producer said. “Our cutomers understood [our need to increase prices]. It was an increase of €70-80/tonne.”
The previously long market is now deemed more balanced because of both maintenance upstream and improved demand.
However, distributors did not necesssarily agree.
“[Producers achieved] €10-20/tonne [increases],” a distributor said. “From my point of view, a rollover is expected. Demand is quite stable, not too much.”
Negotiations are ongoing for some participants.
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