US etac may rise 2 cents/lb instead of 3 as feedstocks tighten

HOUSTON (ICIS)–A producer of US ethyl acetate (etac) said on Thursday prices will go up at least 2 cents/lb ($44/tonne), but stopped short of saying it expected to get the full 3 cents/lb it asked for.

It was the second etac producer this week that hinted that the etac increases could be in the 2-cent/lb range.

“We’re definitely getting at least 2 cents,” the source said.

In addition, US etac prices are trending up and could stay that way in the near future due to tightening feedstocks, the source said.

Several etac producers proposed separate 3 cent/lb price increase nominations for etac for April. Buyers were not pleased , saying there is plenty of supply in the market. Producers countered that production turnarounds and increased feedstock costs warrant increases.

Buyers appear to have grudgingly accepted the increases. Some have said they plan to negotiate prices back down in May and June.

A producer said that that likely will not work.

“Not possible,” a producer said. “Acetic acid is starting to tighten, and ethanol is going up.”

Major suppliers of etac are Celanese, Eastman Chemical and Solvay.