Europe etac prices continue to be driven upwards on supply shortages

17 April 2014 17:18 Source:ICIS News

LONDON (ICIS)--Despite the European ethyl acetate (etac) market slowing down as a number of participants take extended Easter holidays, spot prices continue to be driven up on severe supply shortages, participants said on Thursday.

“It’s [an increase of] another 20/tonne [this week],” one producer said. “They [prices] are moving up pretty quickly. We are extremely tight, Prices were moving slowly, now there's more of a panic. We're getting new customers we haven't sold to before.”

A distributor of Indian etac said: “I got a lot of enquiries [from customers]. Prices moved up by 20/tonne more [this week]. We are out of stock.”

The lack of spot availability during recent weeks stems from a combination of fewer imports entering Europe so far this year, and reduced availabilty of European spot volumes.

Following the increase in European import duty that took effect on 1 January, relatively low etac prices in Europe meant that a number of suppliers in the countries affected - including India and Saudi Arabia - chose to sell to other regions where better prices could be obtained.

While a European producer restarted its production last weekend, spot supplies of etac will be limited for the next couple of weeks while stocks are rebuilt and the backlog of orders filled.

By Jo Pitches