US acetic acid spot price drops $50/tonne on methanol decline

14 May 2013 22:43  [Source: ICIS news]

HOUSTON (ICIS)--US acetic acid FOB export prices fell $50/tonne (€39/tonne) in the past week because of the recent decline in feedstock methanol, sources said on Tuesday.

The new US acetic acid spot range is $600-690/tonne, compared with the previous $650-740/tonne.

The US methanol spot barge range dropped 3% last week on selling in an attempt to close the arbitrage between China and American spot prices.

A US distributor said the feedstock decline seemed the only reason for the acetic acid drop, adding that demand was unchanged.

The reduction also worked to close a gap between high US acetic acid spot prices and those in Asia and the Far East, which are easily $150/tonne lower.

Another source noted a recent shipment of acetic acid to India that was heard coming from a US producer probably cost around $600/tonne when adding in shipping costs.

Major US acetic acid producers include BP, Celanese and Eastman Chemical.

($1 = €0.77)

By: Lane Kelley
+1 713 525 2653

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