29 January 2010 17:12 [Source: ICIS news]
LONDON (ICIS news)--European ethyl acetate prices have risen by around 20% due to market tightness following INEOS' declaration of force majeure at its Hull, UK, facility earlier this month, buyers and sellers said on Friday.
INEOS made the declaration on 18 January following the unsuccessful restart of the 245,000 tonne/year unit, which had been out of production since the end of November last year.
“We could sell far more than we produce,” one manufacturer said, adding that it expected a tight market to remain through February.
Another seller said: “I have stepped back from the market to see how successful the restart of INEOS will be next week [1 February].”
There was some debate about the true amount of business taking place. “We are just trying to live off our existing stocks,” one customer said.
Prices were assessed approximately 18-22% higher than two weeks ago, at €910-980/tonne ($1,264-1,361/tonne) FD (free delivered) NWE (northwest Europe), according to data from global chemical market intelligence service ICIS pricing.
This was a move from prices in the week to 15 January at €770-800/tonne FD NWE.
“It seems inevitable that we will have to incur a price rise in February, but there is bound to be a long debate about how much,” one buyer said.
Sellers were reviewing prices on a day by day basis and did not quote any specific price targets for February.
($1 = €0.72)
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