LONDON (ICIS)--European ethyl acetate (etac) spot prices have risen sharply on the back of higher feedstock costs and tighter supply, according to an ICIS assessment.
Prices stood at at €1,120-1,180/tonne FD (free delivered) NWE (northwest Europe), an increase of €80/tonne.
Rising costs for feedstock acetic acid have put upwards pressure on etac prices, supported by a tightening of supply and peak seasonal demand.
Prices were heard above the assessed range, but were not confirmed in the wider market.
The ICIS midpoint for feedstock acetic acid monthly contract prices has risen by almost €200/tonne since January on tight supply caused by unexpected shutdowns and maintenance turnarounds.
Further increases in acetic acid costs are expected for June.
Supply has tightened, with sources saying that imported volumes were limited as vessels from India had been delayed.
Sources said that supply was particularly tight in Italy.
Demand was strong, as June is typically the peak of demand from the downstream coatings sector.
Etac is used in coatings, pharmaceuticals and solvents.
Pictured: Strong seasonal demand from the coatings industry has tightened etac's supply Source: WestEnd61/REX/Shutterstock