13 July 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--Acetic acid contract prices for July were assessed down by €10–20/tonne ($12–24/tonne) from June by ICIS on Friday.
July contract prices were assessed at €390–420/tonne FD (free delivered) NWE (northwest Europe).
ICIS introduced a monthly contract price assessment in March 2012. Substantial quantities of acetic acid are also sold on quarterly contracts.
Market sources said that the price decreases reflected a moderately well-supplied market and the arrival of summer, which is usually a quiet period for the market, owing to many participants being on holiday.
Contract prices are expected to remain fairly stable through August, assuming that there is no significant change in the supply-demand balance.
The spot market was inactive this week. Prices were most recently heard in the high €400s/tonne and low €500s/tonne FD NWE for truck deliveries, and in the mid-€400s/tonne FD NWE for bulk cargoes.
A reseller noted that the steady fall in the value of the euro against the US dollar means that imports are increasingly expensive, which is helping to support acetic acid prices.
On the other hand, the reseller said, global offtake has declined amid fears of a financial crisis.
Demand in Turkey has fallen sharply, the source added, putting pressure on suppliers in eastern Europe.
($1 = €0.82)
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