Europe butac prices not attractive to Russian producers

04 July 2014 16:54 Source:ICIS News

LONDON (ICIS)--Relatively low European butyl acetate (butac) prices mean that the European market is not currently attractive to Russian producers trying to sell there, a producer in the country on Friday.

“I’m not interested in selling to Europe, Europe is not workable at all,” the source said.

Following further price hikes for feedstocks acetic acid and propylene, butac producers have tried to raise butac prices.

However, most have so far been unsuccessful due to flat demand for the product.

The Russian producer said, “[European butac] prices are still the same. Besides propylene price hikes, acetic acid [prices] have increased dramatically in the past two weeks. We wanted to increase [butac prices for Europe] by at least €20/tonne, but it didn’t work.”

The source said it will monitor European butac prices and it will consider re-entering the market, should they increase.

A second Russian producer withdrew from the European market late last year.

In March, this source said “The market in Europe is too weak for us to send anything. We haven’t exported to western Europe since late last year. Prices are too low. We need it to go up €100/tonne before we export there.”

European butac prices have remained largely stable since October 2013.

By Jo Pitches