Rising feedstocks sway buyers to accept US acetic acid hikes

08 December 2010 17:31  [Source: ICIS news]

HOUSTON (ICIS news)--Rising feedstock costs have swayed market participants to accept a 5 cent/lb ($110/tonne) increase from US acetic acid producers for late November and early December, sources said on Wednesday.

A large buyer said the surge in methanol prices over the past two months as well as the steady rise of natural gas made the case for accepting the increases proposed by Celanese and Eastman Chemical.

The buyer also predicted further hikes in January.

A buyer in downstream product ethyl acetate (etac) also said he had heard of customers paying the higher prices for acetic acid.

"I think it is sticking," the buyer said of the increase.

Large acetic buyers usually are contract customers.

US Gulf free on board (FOB) prices for acetic acid provided weekly by ICIS currently range from $525-$600/tonne (€394-450/tonne).

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

($1 = €0.75)

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

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