11 October 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European acetic acid October contract prices were assessed by ICIS on Friday at €415-460/tonne ($561-621/tonne), up by €10/tonne from September.
The contracts were concluded on a free delivered (FD) northwest Europe (NWE) basis.
Market participants said that October contract prices were concluded up by €10/tonne in most cases. The €18/tonne increase in the Q4 methanol contract price represents a cost increase for acetic acid producers of about €10/tonne.
One producer said it had settled its October contracts at an average increase of €10-15/tonne, but only the low end of this range could be verified by other market participants.
There was general agreement that the acetic acid market remains well-supplied. The spot price range for truck deliveries was assessed unchanged at €470-500/tonne FD NWE. Spot prices for bulk parcel deliveries were heard last week in the low €400s/tonne delivered.
The closure of INEOS's 300,000 tonne/year vinyl acetate monomer (VAM) plant in Hull, the UK, last week is prompting discussion in the market as to the likely effects on BP's acetic acid operations at the same site.
Assuming full capacity utilisation, the VAM plant would have required approximately 225,000 tonnes/year of acetic acid. BP's Hull plant has a nameplate capacity of 532,000 tonnes/year.
($1 = €0.74)
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