25 October 2013 15:21 [Source: ICIS news]
LONDON (ICIS)--A Mediterranean producer of ethyl acetate has temporarily withdrawn from the market because of poor margins, it said on Friday.
“In October we stopped production [of ethyl acetate],” the source said. “Now the situation is critical in terms of margins, we have no choice but to close temporarily. Margins continue to be very, very poor.”
European etac producers have suffered compressed margins during recent months because of the inability to pass on increased feedstock costs.
This is frequently attributed to robust competition between European sellers and importers.
“Costs are very high, selling prices are below what we need,” the producer said. “There is no market.”
The source added that it will monitor market prices and re-enter the market if and when possible.
Etac prices are unlikely to increase in November or December because of seasonal factors, the producer said.
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