15 November 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European acetic acid November contract prices were assessed by ICIS on Friday at €415-460/tonne ($561-621/tonne), representing a roll over from October.
The contracts were concluded on a free delivered (FD) northwest Europe (NWE) basis.
Demand is cited as stable and supply is balanced in Europe, market sources said this week.
Buyers said they have mostly agreed to a rollover for November with the exception of one consumer who said it still wants a small decrease versus October.
Sellers said acetic acid prices are unlikely to falter this quarter on the back of higher methanol feedstock costs and a plant outage in Ukraine.
The €18/tonne increase in the fourth-quarter methanol contract price represents a cost increase for acetic acid producers of about €10/tonne.
Ukraine-based Azot Severodonetsk will keep its acetic acid plant closed throughout November for economic reasons, a source close to the company said on 25 October.
The producer began a shutdown at its acetic acid and vinyl acetate monomer (VAM) units in September, although precise dates were not disclosed.
In the meantime, Russian acetic acid supply is available to cover the shortfall from the Ukrainian plant but offers of Russian truckloads were indicated at above €500/tonne FD NWE which is deemed too expensive, traders said.
($1 = €0.74)
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