LONDON (ICIS)--Spot butyl acrylate (butyl-A) prices in Europe are €20-60/tonne below prices seen two weeks ago, due to reduced demand in a well-supplied market, sources said on Wednesday.
The range is tighter at €1,480-1,500/tonne ($2,000-2,027/tonne) FD (free delivered) NWE (northwest Europe), with values now around the level they were at the end of May.
“[The] problem is there is no demand, so price is not even the issue,” one trader said.
Prices have been falling since this year’s peak in August at €1,750/tonne FD NWE, after the market saw a 20-month high in butyl-A spot values in July.
Prices began to rise in May as peak season demand picked up. The incline continued in June as buyers struggled to secure material, because of the force majeure in place at BASF, and amid other outages.
Demand from the end-use paint and coatings sector is typically healthy during the European summer months. Butyl-A spot prices increased sharply between mid-June and the end of July on supply constraints.
BASF implemented force majeure on butyl-A on 13 June because of production problems at its Ludwigshafen facility in Germany. It was lifted on 21 June, and sales control was put in place until the end of October.
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($1 = €0.74)