06 September 2013 18:23 [Source: ICIS news]
LONDON (ICIS)--While European ethyl acetate (etac) producers will target price hikes following a €50/tonne increase in the September ethylene contract price (CP), they are likely to struggle to attain them, distributors said on Friday.
Last week, a producer said it would aim to increase its etac prices by €30-50/tonne.
“I don't think European producers will be able to increase prices,” an etac distributor said on Friday.
The source spoke of importers selling etac at relatively low prices.
Fierce competition between European producers and importers is often cited as a key reason for the difficulties the former faces in increasing etac prices.
Furthermore, demand has not fully picked up following the summer holiday season.
Another distributor said: “Demand is still slow. They [producers] will not have the biggest chance of [attaining] an increase. It might be [a] €10-20/tonne [increase] that will work out in the end. There are [lower priced] imports from Saudi [Arabia] and India.”
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