13 September 2013 19:03 [Source: ICIS news]
LONDON (ICIS)--Volumes of ethyl acetate (etac) exported from India to Europe are currently limited because of the weak Indian rupee, high feedstock costs and limited supply, an Indian producer said on Friday.
While the weaker rupee encourages exports, it also renders imports of dollar-priced feedstocks acetic acid and ethanol, which are already expensive, even more costly, cancelling out the benefit of selling etac overseas.
“The rupee has depreciated; imports [of feedstocks] are curbed,” the source said. “We have a weak supply of ethanol imports. Prices have been shooting up.”
The producer added that production of etac in India is limited, worsened by issues with power and water supply in parts of the country. This has resulted in some plants reducing etac production or shutting down.
“There’s not much Indian etac going to Europe. We’ve rationed our supply to Europe,” the source added.
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