Europe April acetic acid contracts settle at rollovers, small hikes

11 April 2014 23:59 Source:ICIS News

LONDON (ICIS)--European April acetic acid prices were concluded at rollovers and modest increases, market sources confirmed on Friday.

April contract prices were assessed by ICIS at €435-480/tonne free delivered (FD) northwest Europe (NWE), up by €5/tonne at the low end.

Upward price movement was larger in southern Europe due to greater availability constraints in the region.

Tighter supply resulting from planned turnarounds at plants in the US and Russia outweighed the €33/tonne fall in the Q2 methanol contract price, which represents a cost decrease for European acetic acid producers of about €17.50/tonne.

One producer said that its April contract prices had risen, with increases of €10/tonne being representative of average price movement. The seller noted that demand is stable at healthy levels and said that it is prioritising supplies to contractual customers.

A second producer said that its contract prices had been concluded at rollovers and increases of €5/tonne in northern Europe, with accounts in southern Europe receiving increases of €10-20/tonne.

The source added that downstream vinyl acetate monomer (VAM) production rates are high, and a seasonal improvement in purified terephthalic acid (PTA) production is expected.

Acetic acid spot prices were assessed on Friday at €495-520/tonne FD NWE, up by €5/tonne at the low end.

By Samuel Weatherlake