20 September 2013 18:08 [Source: ICIS news]
LONDON (ICIS)--European producers of ethyl acetate (etac) could try to increase prices in October, market participants said on Friday.
“A distributor [customer] was desperate for more material,” a producer said. “This indicates to me that prices are trying to be pushed up. October prices will definitely go up, maybe €10-20/tonne up.”
During the last week or so, an exporter of Indian etac to Europe said it has noticed European buyers accepting prices that they previously deemed too expensive.
The source said: “After the ethylene [September contract price] increase, the belief in Europe is that there is no further downwards movement [of prices]. The expectations of Europe are prices going up more, so [people are] buying now.”
Attempts by etac producers to pass on increased feedstock costs in August and September were largely unsuccessful. This was attributed to both muted demand during the summer holiday period and robust competition between sellers.
Rising feedstock costs – the August ethylene contract price (CP) increased by €40/tonne ($54/tonne) from July, with the September CP settling at a further €50/tonne increase – coupled with relatively stagnant etac prices has resulted in compressed margins for etac producers, increasing their urgency to push through price increases.
($1 = €0.74)
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