22 October 2012 05:53 [Source: ICIS news]
By Trisha Huang
MELBOURNE (ICIS) – Spot prices of ethyl acetate (etac) in ?xml:namespace>
Prices of etac offered by China, a regional benchmark, have been largely unchanged for the six weeks ended 19 October at $920-935/tonne (€708-720/tonne) FOB (free on board) China, mimicking the consistency in upstream acetic acid prices over the same period, according to ICIS data.
Acetic acid prices were stable in the six weeks ended 19 October at $420-430/tonne FOB
The cost of co-feedstock ethanol in
Ethanol has held firm at yuan (CNY) 6,330-6,650/tonne ($1,013-1,064/tonne) in the
While the gains in ethanol costs since early July had prompted Chinese makers to raise offers for etac cargoes loading in August, September and October, their price hike proposals have had limited success because of a lack of further improvement in etac demand in China’s key export markets.
Rising Indian etac sales to
“Even though our margins have been under pressure from high feedstock costs, it has been quite difficult to raise prices in recent months, because our buyers have been resistant to price increases by even $5-10/tonne,” said a Chinese etac maker.
Demand for etac in the downstream ink, paint and adhesive sectors in
On the buying side, attempts by importers to raise their local selling prices in tandem with their cargo replacement costs have similarly been undermined by substantial end-user resistance. As such, the importers have been resisting Chinese etac maker’ proposed price increases throughout August, September and October.
In southeast Asia, a distributor reduced its ex-tank price in
“There were very few takers at $1,040/tonne ex-tank, because other regional suppliers offered etac at more competitive prices of about $1,000/tonne ex-tank. To move product, we had few options but to cut prices,” said the distributor.
In addition to stable buying ideas in the export markets across
Some importers added that they are unwilling to accept price increases in view of rising supply from
“It’s a classic case of oversupply,” said a southeast Asian importer.
“There is simply too much product available in the market,” the importer said.
Two new plants with combined etac capacities of half a million tonnes a year were commissioned in late August.
Wuxi Baichuan Chemical Industrial has offered cargoes to buyers abroad after starting up its new 300,000 tonne/year etac/butyl acetate (butac) swing plant at
Shanghai Huayi Goup has doubled its etac capacity with the commissioning of its new 200,000 tonne/year etac plant at Wuwei in
The company operates a second etac plant of the same capacity at Wujing in
While demand in the leading export markets is set to grow annually, the demand growth has failed to keep pace with the rapid increase in supply.
Import demand into
Based on the latest import data, some traders estimate that etac imports into
Import volume into
($1 = €0.77 /$1 = CNY6.25/ $1 = W1,105.45)
Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections
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.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections