US acetic acid spot price rises 2 cents/lb on tightness from FM

21 August 2012 21:32  [Source: ICIS news]

HOUSTON (ICIS)--US acetic acid spot prices rose by $50/tonne (€41/tonne) on the high side of the range during the past seven days on further tightening from a force majeure, sources said on Tuesday.

US acetic acid FOB (free on board) export prices now run at $615-715/tonne, sources said, about 4% higher on an average basis from the previous range of $615-665/tonne.

The jump represents another breakout to a new high this year for spot US acetic acid, which moved up initially in July following the force majeure declared by BP on material produced at a Texas plant. BP announced the action in a 23 July letter to customers.

One buyer had heard of spot acetic acid hitting $750/tonne in the past week, although it could not be confirmed, and that number had since retreated.

Another source reported hearing highs of $683-705/tonne.

“The FM has helped everyone get prices up, that is for sure,” a buyer said.

A popular buy point was around $661/tonne, according to market sources.

There was more talk that BP would end the force majeure soon - some said within the next week.

BP has not issued a statement on when the force majeure would end. Major US acetic acid sellers include BP, Celanese and Eastman Chemical.

($1 = €0.81)

By: Lane Kelley
+1 713 525 2653

AddThis Social Bookmark Button

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