Eastman wants 4-cent acetic acid hike - buyer

03 June 2008 21:39  [Source: ICIS news]

HOUSTON (ICIS news)--Eastman Chemical has proposed a 4-cent/lb ($88/tonne or €56/tonne) price increase for acetic acid beginning immediately, a buyer said on Tuesday.

But no business was transacted at that price, the buyer added.

Eastman's last price proposal for acetic acid was a 2-cent/lb nomination for April, which did not gain a foothold in the market. Initial prices on second-quarter contracts in US acetic acid settled at a rollover because of the continuing drop in feedstock methanol prices

.US methanol prices have fallen 3.2% in the past month due to growing supply and lethargic demand, according to the ICIS Petrochemical Index (IPEX) for May.

Eastman did not return a message seeking comment.

Acetic acid is a feedstock for vinyl acetate monomer (VAM), a key ingredient in paints and coatings that accounts for about 60% of the acetic acid market.

Dow Chemical on Monday announced a 4-cent/lb increase for VAM, according to the company.

The FOB (free on board) export price range for acetic acid is $750-800/tonne, according to global chemical intelligence service ICIS pricing. List prices remain at 67-69 cents/lb.

Major US acetic acid producers include Eastman, BP and Celanese.

($1 = €0.64)

For more on acetic acid visit ICIS chemical intelligence

To discuss issues facing the chemical industry go to ICIS connect

By: Lane Kelley
+1 713 525 2653

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