01 November 2013 17:52 [Source: ICIS news]
LONDON (ICIS)--At least one European etac producer will target a price increase for November contracts, despite softer feedstock costs, it said on Friday.
The November contract price for feedstock ethylene settled at a €30/tonne decrease from October.
“We're not waiting on [feedstock] settlements to put our [etac] pricing forward,” the source said.
“Competitors are decreasing prices, but if we don't get an increase we'll limit the volumes pushed into market. We are now taking a firm stance.”
The source said it aims to increase etac prices by an average of €25/tonne.
It has frequently been noted by a number of market participants that etac price movements do not necessarily follow those of feedstocks. This was the case in August and September, when ethylene prices climbed, while etac prices held relatively steady.
Following a €35/tonne ($47/tonne) decrease in the October ethylene contract, and stable etac prices, etac producers' margins recovered to some extent.
Now they hope to achieve a further recovery.
($1 = €0.73)
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