LONDON (ICIS)--Relatively low prices for European ethyl acetate (etac) mean that some importers prefer to refrain from doing spot business in Europe, they said on Friday.
This is especially the case as better prices can be obtained selling etac in other regions.
Indian sellers are particularly impacted, as they face high feedstock costs, feedstock shortages and increased European import duty.
A distributor of Indian volumes said: “We are offering at €800 -810/tonne FCA [free carrier], but [European] customers are expecting €790-795/tonne FCA. There's a gap between their price and ours. Neither side is backing down.”
The source added that it is preferable to not do business than to lose money on deals.
“We've not sold any at those [lower] prices,” the source added. “We are maintaining our price. Business is less, but we are prepared to wait.. We can do business into other markets [where prices are higher].”
One of these markets is India itself, where etac prices are high.
“There’s a $60-70/tonne gap between Europe [etac prices] and other regions [etac prices],” the distributor said.
An Indian producer said: "I haven't agreed to lower prices [European customers want]. It's fine for us, Indian prices are good. Other markets [prices in other markets] are up, it's only Europe [that has low prices]."