US etac producers confident 3 cents/lb increase will find traction

04 April 2014 17:51 Source:ICIS News

HOUSTON (ICIS)--Confident US producers of ethyl acetate (etac) are moving forward with price increases, a source said on Friday.

“Customers are confirming acetic acid and ethanol increases, so we feel confident going forward [with the increase],” a producer said on Friday.

Current ICIS-assessed prices for US etac are 64-66 cents/lb ($1,411-1,455/tonne) for distributor prices and 56-60 cents/lb for spot prices.

Ethyl acetate has been flat for the first quarter of 2014 and for most of 2013. However, production-related turnarounds in acetic acid and climbing ethanol prices are pressuring market participants.

Major US etac suppliers Eastman Chemical, Celanese and Solvay each made separate 3 cents/lb announcements for April.

Earlier this week, the etac increases were the talk at the International Petrochemical Conference (IPC) in San Antonio. Sentiment was that producers were hesitant about their proposed increases.

But, after more meetings with customers, producers decided that the increases could find traction, the source said on Friday.

By Andrew Guy Jr