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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