Views mixed on Europe butac prices

Jo Pitches

06-May-2016

LONDON (ICIS)–Views are mixed regarding European butyl acetate (butac) prices this week, with some participants reporting slight price hikes following the increase of the May contract price settlement of feedstock propylene, while others cite stable butac prices.

Following the more significant propylene price hike last month, butac prices merely edged upwards.

As a result, compressed margins mean that butac producers face greater pressure to move prices upwards in light of a further feedstock cost increase.

“The feedback from customers is that prices are moving [upward],” one producer said. “There’s an increase of up to €10/tonne. Demand is excellent, better than expected.”

It attributes this to a combination of improving seasonal demand and Celanese’s recent decision to exit the butac market.

The producer is optimistic about the outlook for the market, believing it will soon be possible to raise prices further.

In contrast, a distributor names two producers it said offered it stable prices this month.

This source views the butac market as very long, with prices in Germany still at €740/tonne FD (free delivered).

“Butac [market] is so oversupplied,” this source said. “The prices we got from our suppliers were the same as April. Prices are stable this week.”

With public holidays in much of Europe this week, business has been muted.

The ICIS spot price range was left steady at €740-780/tonne FD NWE (northwest Europe), pending further market feedback.

READ MORE

Global News + ICIS Chemical Business (ICB)

See the full picture, with unlimited access to ICIS chemicals news across all markets and regions, plus ICB, the industry-leading magazine for the chemicals industry.

Contact us

Now, more than ever, dynamic insights are key to navigating complex, volatile commodity markets. Access to expert insights on the latest industry developments and tracking market changes are vital in making sustainable business decisions.

Want to learn about how we can work together to bring you actionable insight and support your business decisions?

Need Help?

Need Help?