02 January 2013 06:03 [Source: ICIS news]
MELBOURNE (ICIS)--Korea Alcohol Industrial has reduced its domestic ethyl acetate (etac) price in January in a bid to improve its competitiveness against lower-priced imports, a company official said on Wednesday.
The South Korean producer’s January etac price will be at won (W) 1,150/kg ($1,082/tonne) EXW (ex-works), down by W20/kg from December, the official said.
Korea Alcohol’s decision to implement a third consecutive domestic price reduction since November was prompted by increasing competition from the progressively lower prices of imported etac, chiefly supplied by China.
The prices of etac offered by China, a regional benchmark, fell by 4% since early October 2012 to close at an average of $890/tonne (€676/tonne) FOB (free on board) China for the week ended 21 December 2012, according to data compiled by ICIS.
At the same time, the strength of the local currency against the US dollar in recent months has rendered the cost of dollar-denominated etac imports increasingly competitive, the official added.
Korea Alcohol, which operates an 85,000 tonne/year etac/butyl acetate (butac) swing plant in Ulsan, is South Korea’s sole producer of etac and butac.
($1 = W1,063 / $1 = €0.76)
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