Europe etac market waits October ethylene CP settlement

27 September 2013 23:59  [Source: ICIS news]

LONDON (ICIS)--The European ethyl acetate (etac) market is awaiting the settlement of the October contract price for feedstock ethylene, participants said this week.

“Nobody has offered anything this week,” a buyer said. “People are waiting for the monomer settlement.”

Early indications for the October ethylene CP vary from a small increase to a small decrease.

One etac producer said it has no firm ideas for October etac price targets, although it said it needs to increase prices in order to restore damaged margins.

“Every time we try to increase [etac] prices we lose volumes,” the source said. “[We’ve had] months and months of not being able to increase [etac] prices. We haven't been able to compensate for any of the ethylene increase of €90/tonne [during August and September].”

“The market price [for etac] has completely drifted away from raw material costs,” the source added. 

This inability to raise etac prices is often attributed to fierce competition between sellers, particularly importers of volumes from India and Mexico.

European etac currently is assessed by ICIS at €840-870/tonne ($1,135-1,176/tonne) FD (free delivered) NWE (northwest Europe).

($1 = €0.74)

By: Jo Pitches
+44 208 652 3214

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