16 August 2013 17:39 [Source: ICIS news]
LONDON (ICIS)--European ethyl acetate (etac) producers may try to increase prices in September having been unsuccessful in pushing though price hikes in August to match the increase in feedstock ethylene costs, sources said on Friday.
The August feedstock ethylene contract price settled at an increase of €40/tonne from July.
“[We] Hope there’ll be an opportunity to increase [prices] in September,” a producer said. “We’ll wait and see how things stand after the holiday season.”
Demand remains subdued because of summer holidays. August is considered a bad month to try to increase prices.
Chances of implementing price hikes are deemed better in September, when business has resumed and demand picks up.
“Trying to get prices up when nobody's at work, it's not going to work,” another producer said, adding that it expects prices to rise in September.
“Price increases were not successful,” a distributor said. “They [producers] may try again in September.”
Last week one producer had little choice but to settle at a rollover or small increase. It had to be flexible with its August price targets in order to claim back its market share.
Competition between European producers and importers selling volumes at lower prices is said to be another key reason for European producers' compressed margins and their difficulties in achieving price increases.
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