04 September 2012 22:46 [Source: ICIS news]
HOUSTON (ICIS)--US ethyl acetate (etac) contract and spot prices moved up 5 cents/lb ($110/tonne, €87/tonne) as September began and distributor prices rose slightly because of continued raw material increases, sources said on Tuesday.
Distributor prices widened slightly on the high side, to 82-86 cents/lb, from 82-85 cents/lb previously. The popular distributor range rose 5 cents/lb in mid-August, also because of feedstock hikes.
Sources said etac contract prices jumped 5 cents/lb to 80-84 cents/lb, from 75-79 cents/lb previously. Spot prices rose by the same amount, to 76-80 cents/lb, from 71-75 cents/lb previously, also stemming from feedstock hikes.
The increases stem from feedstock US industrial ethanol, which appears on the verge of another big hike based on widespread talk that a producer recently announced a sales control and another producer plans to raise prices in October, sources said.
Industrial ethanol rose 38 cents/gal in August because of corn prices, which have been rising because of the severe drought in the midwest.
Another etac feedstock, spot ethylene, jumped almost 3 cents/lb last week because of cracker shutdowns caused by Hurricane Isaac, sources said. Spot ethylene reached an average of 59.25 cents/lb, from an average of 56.38 last week.
Etac suppliers in the US include Celanese, Eastman Chemical and Sasol. Etac is used primarily for inks and coatings and is an ingredient in nail polish.
($1 = €0.79)
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