Higher feedstock costs see Europe etac prices start to rise

04 July 2014 17:44 Source:ICIS News

LONDON (ICIS)--The majority of participants in the northwest Europe ethyl acetate (etac) market have reported upward pressure on prices this week following increases for feedstocks ethylene and acetic acid, sources said on Friday.

However, etac price hikes have been accepted more easily in some parts of Europe than others.

“It’s a mixed picture [in terms of customers accepting higher prices],” one producer said. "Northwest Europe seems to work [accept higher prices], but there’s a huge pushback from other customers. Spain is difficult, and Italy. It’s [raising etac prices] not worked in the Med.”

Indian sellers reported healthy demand from European customers, shortages of etac supply and European etac prices going up.

However, other market participants have not yet seen price hikes this week, but believe it is just a matter of time.

“I definitely think prices will move up,” a distributor said. “For some distributors and some producers it already did.”

Just one distributor disagreed with the idea of prices facing upward pressure.

“I don't see any signal that prices will go up further,” this source said.

Last week, the European July contract price for ethylene settled at an increase of €50/tonne from June.

As a result, both local and importing producers sought July etac price hikes of €30-60/tonne from June levels.

By Jo Pitches