European butac players discuss slumping prices in spot market

Ben Lake

02-Dec-2016

LONDON (ICIS)–Europe butyl acetate (butac) market players are discussing potential price drops for the spot market, according to sources on Friday.

However, as this could not be confirmed across the market, the price range has remained unchanged pending further market insight.

Some sources saw prices slide below €1000/tonnes as demand drops in the traditional summer lull.

“Volumes coming from Asia and Russia are now available in the market,” a trader said .

This is easing the shortness caused by the force majeure in place at BASF’s Ludwigshafwen plant, according to the source.

With prices elevated for the past month, a source said it had some inquiries from an American producer to gauge prospects for developing market share. The source said it did not expect prices would stay so high if supply of overseas material increased in the region. The potential for this all depends on the state of affairs at BASF.

Availability of butane tightened six weeks ago following an explosion at the BASF Ludwigshafen plant. Production was ceased at the site. This had a major impact on the European butac market, which had previously been seen as tight owing to earlier production issues. There is no current return date announced by BASF.

Butac prices currently stand at €1,050-1,100/tonne FD (free delivered) NWE northwest Europe.

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