Europe acetic acid March prices roll over on stable fundamentals

14 March 2014 23:59 Source:ICIS News

LONDON (ICIS)--European acetic acid March contract prices were assessed by ICIS on Friday at €430-480/tonne, a rollover from February, on stable market fundamentals.

The contracts were concluded on a free delivered (FD) northwest Europe (NWE) basis. No exceptions were heard, with all accounts receiving rollovers.

Acetic acid supply and demand are balanced, and feedstock costs are unchanged month on month.

Little movement is expected on the Q2 methanol contract price, following the €37/tonne rise in the Q1 price, although a decrease is now considered a strong possibility.

Some Q1 acetic acid contract prices remain under negotiation, but the majority have now been finalised at increases of €10-30/tonne, reflecting the first-quarter rise in production costs of about €20/tonne.

A buyer described a quiet market and said it does not expect to see any changes in fundamentals during the second quarter. There is no real drive in the market to reduce prices, the source noted.

A reseller based in eastern Europe said it had heard a range of spot prices under discussion for bulk material, but felt that prices in the mid-€400s/tonne on a delivered basis remained representative of the market.

Spot prices for truck deliveries were assessed stable on Friday at €490-520/tonne FD NWE.

By Samuel Weatherlake