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Updated to Q1 2017
The US ethyl acetate (etac) market trended higher during the first quarter, reflecting the success of price increases separately nominated by several producers. Multiple producers separately announced price increases of 5 cents/lb ($110/tonne) effective 1 January or as contracts allowed, with some citing elevated feedstock costs as the reason for the hike.
According to sources, the January increases achieved traction in the market, although the increase was revised down a cent after further feedback. In addition, several producers announced price increases of 4-5 cents/lb, effective 1 March or as contracts allowed.
One source noted that the March increase was influenced by supply and demand, as well as market sentiment, rather than by raw material costs. Overall, market participants said the March increase was successfully holding at 4 cents/lb.
Feedback regarding supply was mixed during the quarter. There was talk that ethylene-based etac had tightened as producers suggested that other downstream chemicals were more profitable to produce. However, other sources said supply remained available without issues.
Meanwhile, demand strengthened throughout the quarter. Etac is largely driven by the coatings and adhesive sectors, which tend to see demand increase in the spring and summer months, as the US construction season ramps up.
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ICIS price assessments are based on information gathered from a wide cross-section of the market, comprising consumers, producers, traders and distributors from more than 250 reporters world-wide. Confirmed deals, verified by both buyer and seller, provide the foundation of our price assessments.
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