Celanese hikes March Asia acetic acid by $30/t

05 March 2008 08:35 [Source: ICIS news]

SINGAPORE (ICIS news)--Global acetyls producer Celanese's move to raise its off-list selling price for acetic acid in Asia by $30/tonne (€20/tonne) from 17 March or as contracts allowed is aimed at taking advantage of better downstream demand, Chinese producers said on Wednesday.

Celanese announced the hike on Monday but did not disclose exact price details.

Despite softening feedstock methanol values, Chinese producers believed that the move to raise acetic acid prices was necessary in light of improving demand from its downstream purified terephthalic acid (PTA) and ethyl acetate sectors in the key China market.

Celanese also raised acetic acid prices in the US and Canada by $0.02/lb, and in Mexico, Central and South America by $40/tonne or as contracts allowed, effective from 1 April, the release issued on Monday stated.

In Asia, acetic acid contract prices are opaque by nature but spot prices were around $600-620/tonne CFR (cost and freight), Asia at the close of business on Friday, up $10/tonne from the previous week, according to global chemical market intelligence service ICIS pricing.

Spot prices had been on a downward spiral since mid-October, tracking poor economics in the PTA and ethyl acetate sectors, market players said.

“It is timely and necessary to raise prices now as demand has improved after the Chinese New Year holidays,” an east China-based producer said.

“Chinese domestic prices are rising and now is the chance for foreign producers to reduce the gap between the price of exporting to China and other areas,” a market observer added.

Ex-tank prices in east China rose to yuan (CNY) 5,450-5,600/tonne ($767-788), up CNY150/tonne from early February levels due to robust demand.

($1 = CNY 7.11 = €0.66)

For more on acetic acid visit ICIS chemical intelligence

By: Helen Lee
+65 6780 4359

< previous article(VIDEO - ICIS news Europe Lunchtime Bulletin 2 November 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly