15 June 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--Acetic acid June contract prices were mostly settled at modest decreases from May, sources said on Friday.
Prices were assessed by ICIS down by €10–20/tonne ($13–25/tonne) in the range of €400–440/tonne FD (free delivered) NWE (northwest Europe).
Decreases of €20-30/tonne were heard, along with some rollovers. June contracts above the assessed level were also heard.
A buyer that had reported a contract below the assessed range for May said its price had increased by €15/tonne, bringing its contract into the assessed range for June.
ICIS introduced a monthly contract price assessment in March 2012. Substantial quantities of acetic acid are also sold on quarterly contracts.
BP lifted the force majeure on supplies from its plant in Hull, UK, early this week. The producer had raised its supply allocation to 100% with effect from 1 June.
Market participants said that the market was returning to normal conditions, and that there had been only a limited impact from the force majeure during May.
Availability remains good, and demand is steady, although market participants reported slightly nervous sentiment on account of macroeconomic concerns.
Turnarounds at some consumers’ plants were also noted as a weakening factor in the market.
Spot prices for deliveries by truck were assessed at €540–560/tonne FD NWE. Price ideas for bulk cargoes were heard most recently in the high €400s/tonne FD NWE.
($1 = €0.79)
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