Korea Alcohol cuts August etac prices to boost competitiveness

01 August 2012 06:35  [Source: ICIS news]

MELBOURNE (ICIS)--Korea Alcohol Industrial has reduced its domestic ethyl acetate (etac) price by won (W) 80/kg ($0.07/kg) on 1 August to boost its competitiveness over imports from China, said several importers on Wednesday.

The South Korean producer has cut its domestic etac price to W1,180/kg ex-works (EXW) for August from won (W) 1,260/kg EXW in July, the importers said.

The producer’s July pricing was itself a W80/kg reduction from June.

“[Korea Alcohol] is trying to increase its price competitiveness versus etac of China origin,” said an importer.

“Inventories of imported etac are quite high at the moment, after importers bought about 8,000 tonnes for July delivery,” said a separate importer.

Purchases of Chinese etac for delivery in July were mostly concluded at $905-910/tonne (€733-737/tonne) CFR (cost & freight) Korea, excluding associated taxes, according to information gathered by ICIS.

Etac of China-origin incurs a minimum anti dumping duty (ADD) of 3.14%, in addition to an import duty of 5.5%.

Korea Alcohol Industrial is South Korea’s sole producer of etac/butyl acetate (butac). It operates an 85,000 tonne/year etac/butac swing plant in Ulsan.

South Korean etac demand in 2011 was estimated by market sources at 90,000-100,000 tonnes. Most of the 69,000 tonnes of etac imported in 2011 came from China.

($1 = W1,130)

($1 =  €0.81)

 


By: Trisha Huang



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