30 May 2008 23:59 [Source: ICIS news]
LONDON (ICIS news)--European acetic acid contracts for the second-quarter have been agreed at an average decrease of €80/tonne ($123/tonne) due to lower methanol contract values and ample supply, producers and customers said on Friday.
There was a range of decreases settled, mostly between €70-90/tonne lower than the first quarter agreements, they added.
This takes the second quarter price range to €560-620/tonne free delivered (FD) northwest (NW) Europe, industry sources said. These values take into account an adjustment being made to the weekly ICIS pricing report.
The downward move was a reaction to lower methanol second-quarter contract numbers which were agreed €195/tonne down at €295/tonne FOB (free on board) Rotterdam, as well as a healthy supply of acetic acid.
Acetic acid is a feedstock for vinyl acetate monomer (VAM), a key ingredient in paints and coatings. VAM sources were in a wait-and-see position and reluctant to conclude second-quarter contracts until there was more confirmation from the acetic acid market.
($1 = €0.65)
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