Updated to mid-November 2009
Asian market review by Helen Lee, ICIS pricing
Ethyl acetate spot prices across Asia rose throughout the quarter ending mid-November, largely fuelled by strong ethanol feedstock costs and limited supply of Chinese material.
Overall, prices of Chinese ethyl acetate cargoes gained 8.5% to $765-775/tonne FOB (free on board) China in the mid-August to mid-November period during which the only price decline occurred just before and after the week-long National day holidays due to a slowdown in the Chinese domestic market.
Ethyl acetate prices in northeast Asia (NE Asia) consequently rose 8% during the same period to $800-820/tonne CFR (cost and freight) NE Asia, and in southeast Asia, prices rose by a moderate 4.4% to $820-840/tonne CFR SE Asia in the same time frame.
Meanwhile, limited supply of Chinese material coupled with firm ethanol and ethylene feedstock values contributed to a steady-to-firm ethyl acetate pricing outlook.
European market review by Jane Massingham, ICIS pricing
During the second half of August, European prices for ethyl acetate were steady at €790-820/tonne FD (free delivered) NWE (northwest Europe). Demand was slow as was traditionally seen in the summer season.
Focus quickly moved to September and with another increase seen to ethylene prices, ethyl acetate producers posted targets of plus €50/tonne or minimum offers at €850/tonne FD NWE.
In early September, price assessments were confirmed at €800-850/tonne FD NWE and by mid-month this moved to €820-860/tonne FD NWE. The market was largely balanced, but cost pressures prevailed.
By the end of September, numbers moved again, with some producers announcing an increase of €70/tonne and another targeting €900/tonne FD NWE minimum due to pressure from expected increases on the acetic acid market.
Moving into October, prices peaked at €840-870/tonne FD NWE. Demand was reportedly healthier and supply remained balanced.
However, during the first half of November, prices eased back again to the low €800s/tonne FD with some suggesting the year-end wind down was starting. Both buyers and sellers were keen to end the year with low stocks.
US market review by Lane Kelley, ICIS pricing
Consumer prices for US ethyl acetate rose about 10% in all categories during the three months ended in mid-November, due to tight feedstocks, a lack of imports and just a generally small niche in the inks, coatings and adhesives markets, which are a major ethyl acetate consumer, sources said.
All of the ethyl acetate price hikes occurred in proposed increases of 5 cents/lb that took effect 1 October. That hike followed a 4 cents/lb increase in August. Market sources considered year-end price hikes unlikely considering the traditionally slow pace of ethyl acetate shipments plus the low level of ethyl acetate exports so far this year, which reflects the global recession.