LONDON (ICIS)--Butyl acetate (butac) spot prices in Europe rose in the week to 27 April on rising feedstock acetic acid costs, according to sources on Friday.
Butac prices were assessed at €1,140-1,170/tonne FD (free delivered) NWE (northwest Europe) - an increase of €30-40/tonne.
Acetic acid costs have risen sharply this year on the back of tight supply, with the ICIS mid-point for monthly contract prices settling more than €200/tonne higher for April than in December last year.
The upstream European propylene contract reference price has settled at an increase of €25/tonne for May, which will put further upwards pressure on butac pricing.
Sources gave mixed views on demand.
A producer said that it had seen demand rise as the peak season from the downstream coatings sector is beginning.
However, another producer said that demand was quiet.
Supply remains balanced, though exports to northwest Europe from Russia remain limited.
Production of butac at Russia's Dmitrievsky Chemical Plant is running at a limited rate, according to a company source.
It added that limited volumes are being exported to the northwest European spot market and that it expected production to return to normal rates in June.
Production has been affected since early February by limited supplies of feedstock acetic acid.
Butac is mostly used as a solvent in paints and coatings or as a synthetic fruit flavouring in food products.
Pictured: Wall paints at a German store. Paints
and coatings are a key end market for butac
Source: Manfred Bail/imageBROKER/REX/Shutterstock