12 July 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European acetic acid July contract prices were assessed by ICIS on Friday at €410-450/tonne ($539-592/tonne), unchanged from June.
The contracts were concluded on a free delivered (FD) northwest Europe (NWE) basis.
Acetic acid contract prices for July were mostly concluded in line with June price levels in a balanced market, sources said this week.
One producer said that rollovers represented the average outcome for its July contracts, although some slight increases had been agreed as well. The source said it did not expect to see any fall in offtake during the European summer holiday season.
Demand for downstream vinyl acetate monomer (VAM) is quite good, the source observed, while demand from the purified terephthalic acid (PTA) sector is picking up slowly but surely. However, a buyer said that demand from the PTA sector remains weak.
Another producer said its July contract prices were unchanged from June. The source noted that acetic acid consumption trends are usually steady throughout the summer.
A buyer said it had settled all of its July contracts at rollovers. The source said it expected August prices to be stable as well.
A second buyer indicated a different trend, saying it had secured slight decreases for July, bringing its contract prices below €400/tonne FD. The source attributed this to a seasonal downturn in demand. However, this downward trend could not be confirmed with other sources.
A reseller said it had not been involved in the market recently owing to the lack of arbitrage opportunities. The source noted that availability is quite good.
A reseller based in eastern Europe said it was seeing unchanged prices for July. The source said it had heard that demand was increasing, but saw no evidence for this.
Spot price ideas for bulk cargoes were heard around €400/tonne delivered, unchanged from previous estimates. The assessed spot range for truck deliveries was also stable in the range of €470-510/tonne FD NWE.
($1 = €0.76)
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