NewsFlashQ1 acetic acid settles at a rollover

17 March 2008 23:59  [Source: ICIS news]

LONDON (ICIS news)--Following a wave of lengthy discussions, first quarter acetic acid contracts were settled at a rollover from fourth quarter levels at €997-1,056/tonne amid healthy availability, buyers and sellers said on Friday.

The contracts were agreed on an FD (free delivered) NWE (northwest Europe) basis.

Sellers initially sought increases of €100/tonne ($154/tonne) but this was met with fierce resistance from buyers who rejected such hikes.

A growing availability in the market had helped quash sellers’ bullish approach, with consumers reporting no difficulty in obtaining volumes and noting good import opportunities from Russia and the Middle East.

Furthermore, a softening in upstream methanol spot prices rendered targeted price announcements unrealistic, they argued.

Although sellers reported achieving marginal increases on a few accounts, of which exact figures were not disclosed, they admitted that it was difficult to conclude at levels above a rollover.

In turn, a few buyers also said they were able to obtain decreases ranging from €20-40/tonne, although these were not considered a fair reflection of business on the whole.

($1 = €0.65)

For more on acetic acid and methanol visit ICIS chemical intelligence

 


By: Fiona Bond
+44 20 8652 3214



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