Europe August acetic acid contracts settle at rollovers, increases

22 August 2014 23:59 Source:ICIS News

LONDON (ICIS)--European acetic acid contract prices were assessed by ICIS on Friday at a €15-20/tonne increase for August.

August contract prices were assessed at €510-570/tonne FD (free delivered) NWE (northwest Europe). Spot prices were assessed unchanged at €550-620/tonne FD NWE.

Sources confirmed that August contract prices were settled at a mixture of rollovers and moderate increases, reflecting a continuing lack of supply and fairly good demand.

A producer with some monthly contract business said its August prices were rolled over, but noted that its prices were already at a high level.

Lack of availability in Turkey has increased demand for imports, and pushed up prices in the region, the producer added.

A second producer said it does not anticipate any worsening of the supply situation, but emphasised that liquidity remains low. The source said it had concluded some spot business this week in line with the previous week's assessed range.

One consumer indicated that the summer downturn in demand has been more severe than in previous years, whereas a second buyer said it had purchased spot tonnes this month to meet high end-user demand for its products.

The source said the material had been priced in the mid-€500s/tonne FD for truck delivery, and had not been difficult to obtain.

A trader said it had examined the possibility of importing tonnes from Asia, but decided this was not viable because Asian prices and freight costs are too high, and European demand is not particularly strong.

By Samuel Weatherlake