US etac sources doubtful of Celanese's proposed 3 cents/lb increase

11 March 2014 20:00 Source:ICIS News

HOUSTON (ICIS)--US ethyl acetate (etac) sources on Tuesday doubted the chances of Celanese's proposal to raise prices by 3 cents/lb ($66/tonne) effective 1 April.

"I don't think anyone is going to follow it," said a distributor. "There's plenty of supply out there."

The etac market has been flat to soft for several months. Market sources last week suggested that planned turnarounds on feedstock acetic acid plants could make that market tight and push up prices for derivatives such as etac.

Another etac source also doubted the chances of the Celanese proposal, saying producers recently rolled contract prices.

"I don't know if that's going to fly," the source said of Celanese's April nomination.

Earlier this month, US etac distributor and spot prices were assessed notionally lower because of weather delays and more potential competition from global producers.

Distributor prices dropped to 73-79 cents/lb, and spot prices fell to 74-78 cents/lb.

By Lane Kelley