17 August 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--European acetic acid August contract prices have settled in the range of €390–430/tonne ($481–531/tonne), up by €10/tonne at the high end, sources said on Friday.
The contracts were concluded on a free delivered (FD) northwest Europe (NWE) basis.
ICIS introduced a monthly contract price assessment in March 2012. Substantial quantities of acetic acid are also sold on quarterly contracts.
Slight increases were understood to be a representative outcome for August acetic acid contract prices.
Contracts were heard settled at increases and decreases from July, but most market participants said there had been little change month on month.
Celanese had announced a €40/tonne increase for European customers with effect from 1 August, but increases of this size were not confirmed on the buy side.
Other producers said they had settled August contracts at rollovers or increases of up to €10/tonne. This was verified on the buy side.
One buyer said it had agreed its August contract price at a decrease of €30/tonne from July, but this was exceptional.
Market sentiment has firmed as participants have started to become concerned about shortening supply in the US.
European availability has yet to be affected by BP’s 23 July declaration of force majeure on acetic acid from Eastman Chemical’s 590,000 tonne/year Texas City plant.
However, a reseller said it has received spot enquires for bulk parcels for September delivery from unexpected sources.
Spot prices for truck delivery were assessed stable at €490–520/tonne FD NWE.
Prices for bulk delivery were heard in a wider range than previously, with one buyer mentioning price ideas as low as €400/tonne FD NWE. A reseller said bulk cargo prices continued to be discussed at about €440/tonne FD NWE, but no deals were heard done this week.
($1 = €0.81)
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