12 April 2013 17:43 [Source: ICIS news]
LONDON (ICIS)--Europe ethyl acetate spot prices edged down as a result of lacklustre requirements, plentiful supplies in Europe and strong competition from importers, sources said on Friday.
The etac price range was assessed by ICIS at €880-920/tonne FD NWE, down by €10/tonne ($13/tonne).
However, with margins already under pressure, some etac producers have been resisting the downward pressure. Many argue that etac prices do not necessarily track ethylene values.
Last week a producer said: “April [etac prices] should be a rollover, nothing has changed but ethylene [price], and that doesn’t change etac [prices] too much. Feedstock prices are not having a direct impact on etac prices, but customers are trying to push for lower numbers.”
This week some participants have had to accept decreases.
“We went down €20/tonne from March,” a seller said. “We underbid the competition. We had to do something. We [initially] tried to preserve a bit of margins, but they're very eroded.”
A distributor said: “It’s a flat market, Indian producers [significant imports from India are entering Europe], high feedstock costs, the automotive sector is still bad. There's too much etac. We tried to rollover [prices], but there is pressure, we’re down €10/tonne.”
($1 = €0.76)
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