LONDON (ICIS)--Despite producers and distributors in the European ethyl acetate (etac) market targeting January price hikes of up to €50/tonne, most have so far been unable to increase prices because of abundant availability, sources said on Friday.
“I haven't seen prices moving up at all,” one producer said. “I’ve heard a lot of announcements [of increases], but frankly there's so much material around, I’m struggling to see where price increases should come from.”
Sellers cited a combination of higher feedstock costs, expected restocking and, in the case of many importers, an increase in European import duty, when justifying their attempts to raise etac prices.
A distributor said: “There’s not much demand, tanks are really full. They’re still full with [last year’s] material with import duty at 2%. This [higher rate] material is only arriving in Jan, so people are still selling at lower prices.”
However, some participants feel that European prices will rise as soon as the old material has been consumed.
“There's strong pressure upwards,” a second producer said. “It's just a question of when prices will go up, and by how much.”