12 July 2013 17:39 [Source: ICIS news]
LONDON (ICIS)--With European producers' margins for ethyl acetate (etac) still compressed because of high feedstock costs and an inability to increase prices due to robust competition with other sellers, it is a buyer’s market, sources said this week.
“Nobody is happy, everyone is losing money except the customer,” a European producer said. “We had to adapt [soften] our prices, I can't tell you by how much. We were losing [not selling] volumes.”
Several participants have recently spoken of robust competition between sellers, with large importers of volumes from India and Mexico considered a particular threat to European producers.
“There are too many players [in the etac market],” the producer said. “We were in hot competition with Indian volumes.”
A distributor said: “Nobody is earning money. For weak demand, there is still too much competition [between sellers].”
“There are so many players. It's a buyer’s market,” a second distributor said.
Etac spot prices are assessed at €840-880/tonne ($1,105-1,157/tonne) FD (free delivered) NWE (northwest Europe).
($1 = €0.76)
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