LONDON (ICIS)--Despite the European ethyl acetate (etac) market slowing down as a number of participants take extended Easter holidays, spot prices continue to be driven up on severe supply shortages, participants said on Thursday.
“It’s [an increase of] another €20/tonne [this week],” one producer said. “They [prices] are moving up pretty quickly. We are extremely tight, Prices were moving slowly, now there's more of a panic. We're getting new customers we haven't sold to before.”
A distributor of Indian etac said: “I got a lot of enquiries [from customers]. Prices moved up by €20/tonne more [this week]. We are out of stock.”
The lack of spot availability during recent weeks stems from a combination of fewer imports entering Europe so far this year, and reduced availabilty of European spot volumes.Following the increase in European import duty that took effect on 1 January, relatively low etac prices in Europe meant that a number of suppliers in the countries affected - including India and Saudi Arabia - chose to sell to other regions where better prices could be obtained.
While a European producer restarted its production last weekend, spot supplies of etac will be limited for the next couple of weeks while stocks are rebuilt and the backlog of orders filled.