Butanediol.(price and demand in market)

Prices

U.S.: $2,000-$2,325/m.t. del, contract

EUROPE: 1,575 [euro]-1,720 [euro]/m.t. del, contract

ASIA/PACIFIC: $1,670-$1,730/mt c&f, spot

Outlook

Butanediol (BDO) producers say the market outlook has improved significantly since mid-2004, but that they are concerned over capacity expansions. Capacity has been growing significantly worldwide during the past two years, and producers put demand growth near 6%/year.

Supply and demand have been balanced, which has allowed producers to maintain reasonable margins in the face of rising raw material prices, analysts say. BASF says it expects cost pressure on producers to remain high this year.

Producers attribute recent BDO demand growth to the expanded use of spandex fibers and …