04 October 2013 17:55 [Source: ICIS news]
“We’re aiming for [an increase of] €20-40/tonne,” one producer said.”We’ve had resistance, but are still trying.”
Another producer announced an October increase of €50/tonne ($68/tonne). The outcome is unknown.
Proposed October etac price hikes are in order to counteract the damage done to margins by an inability to pass on increase feedstock costs during the last two months.
Feedstock ethylene prices increased by €90/tonne during August and September, while fierce competition between sellers meant that etac prices did not follow suit.
“We should have had this [increase] in July, September. Etac prices are extremely low,” the first producer said.
The first producer and a distributor speak of prices having become detached from feedstock costs.
The distributor said: “[Etac] Prices should be detached from feedstock prices, as buyers always fight when it [feedstock costs] goes down, not when it goes up. If there’s a weak market, prices come down. There’s no direct relation between the ethylene price and etac.”
($1 = €0.73)
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