Europe Q2 acetic acid contract prices assessed up by €10-15/tonne

28 June 2013 23:59  [Source: ICIS news]

LONDON (ICIS)--European acetic acid second-quarter contracts were assessed by ICIS at €445-525/tonne ($578-682/tonne) on Friday, up by €10-15/tonne from the first quarter.

The contracts were assessed on a free delivered (FD) northwest Europe (NWE) basis. Contract prices above and below the assessed range were also heard.

Q2 contract price outcomes were heard between a rollover and increases of €40/tonne. However, increases of €10-15/tonne were considered to be representative of average market movement.

Sources said the increases were based on higher feedstock costs rather than any changes in the supply-demand situation. Methanol quarterly contract prices have increased by €50/tonne since the end of 2012.

The assessed range for monthly acetic acid contracts was raised by €10/tonne over the first six months of the year, compared with an aggregate rise of €15/tonne for the quarterly contract price range.

Supply in Europe remains fairly good on account of weaker demand than expected from downstream sectors, including purified terephthalic acid (PTA) and vinyl acetate monomer (VAM).

The second quarter is usually peak season for many associated end-use applications, but the long winter, combined with continuing economic concerns in Europe, has undermined demand.

A producer said it has concluded most of its spot business for July at June price levels.

Spot prices for truck deliveries were assessed at €470-510/tonne FD NWE on Friday, while bulk cargoes were discussed recently at price levels close to €400/tonne delivered.

($1 = €0.77)

By: Samuel Weatherlake
+44 20 8652 3214

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