11 July 2013 16:46 [Source: ICIS news]
LONDON (ICIS)--The monsoon in India is delaying imports of ethyl acetate (etac) to Europe, a distributor said on Thursday.
“There’s not so much product on the import side [coming into Europe],” the distributor said. “There’s heavy rain in India. The monsoon has created a tremendous backlog of vessels. There’s physically little product, and with the monsoon, a three-, four-week delay.”
The news is likely to come as welcome relief to European etac sellers.
Two weeks ago, three European producers, a distributor and a buyer spoke of fierce competition from importers, with cheaper volumes from India in particular posing a threat to local suppliers.
European producers’ margins have been compressed for months because of high feedstock costs and low etac prices. The rivalry between sellers meant that in July European producers had little option but to roll prices over from June rather than increase them to improve margins.
Of further benefit to European sellers, higher etac prices in India, driven by increasing feedstock costs there, mean there is little financial gain in sending volumes to Europe, where buyers are seeking relatively low prices.
“There’s no point sending Indian etac to Europe at the moment,” the distributor said. “There’s no such thing as cheap Indian volumes.”
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