Europe PMA prices to remain firm, say producers

09 August 2007 17:58  [Source: ICIS news]

LONDON (ICIS news)--European methoxyl-propanol acetate (PMA) spot prices should remain firm until October due to a combination of strong demand and tightness upstream, producers said on Thursday.

 

There was no reason why PMA prices, which had been rising since the end of June, should not continue to do so while the current market fundamentals remained, they added.

 

“Demand is extremely good at the moment,” commented one European producer.

 

“August has started as well as any month, despite what people say should be a slower time of year,” it added.

 

Raw material costs would also continue to exert upward price pressure, said sellers. Global acetic acid supply has been extremely tight due to the ongoing force majeure at Celanese’s 1.2m tonnes/year plant in Clear Lake, Texas.

  

Although the plant has now restarted, the force majeure remained in place, and European players said this week that they did not expect normal acetic acid supply to resume for at least another six weeks.

 

However, one producer said firm PMA prices had more to do with basic supply and demand factors than the cost of raw materials.

 

“The market is restricted by production limitations and is experiencing high demand at present,” it said. “Acid tightness is a secondary factor.”

 

PMA prices on Thursday were assessed at €1,420-1,470/tonne ($1,945-2,013/tonne) FD (free delivered) NWE (northwest Europe), according to global chemical intelligence service ICIS pricing.

 

($1 = €0.72)

By: Charles Shaw
+44 20 8652 3214

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