Europe etac prices likely to face downward pressure

19 April 2013 17:19  [Source: ICIS news]

LONDON (ICIS)--European ethyl acetate (etac) prices are likely to face downward pressure if the May feedstock ethylene price settles at a decrease, sources said on Friday.

This has resulted in many etac buyers refraining from purchasing.

“It’s the third week of the month, most people have purchased for April,” a producer said. “Nobody is purchasing for May as they expect it [prices] to go down.”

However, etac producers are reluctant to lower May offers as margins are already compressed.

“Buyers are trying to push it [etac prices] lower,” the producer added. “But volumes are no different than two or three weeks ago. [Feedstock] Acetic acid [prices] is stable. There are acetic acid plant shutdowns. I expect a rollover for May. Prices are at a critical level, people can't produce at lower levels.”

A distributor said: “We’re not planning on taking prices down in May because of the cost price.”

The source added that buyers have to buy when they need material, regardless of price.

A second distributor said: “There’s downward pressure, it’s a case of whether to buy now. It’s possible it [prices] may come down, but producers are very reluctant. We have to wait and see.”

By: Jo Pitches
+44 208 652 3214

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