European ethyl acetate prices are likely to stay high for several more weeks until fresh imports alleviate the new supply tightness, several market sources said Friday.
Etac prices rose 9% this week as Europe's two key suppliers raised prices on declining import volumes. Prices were assessed Eur80/mt higher on the week at Eur990/mt FD NWE.
"Things will stay like this until more imports arrive in six weeks or so. You can't load the material on a ship tomorrow and once your do it take 3-4 weeks for vessels from India and a week or two longer from China," a source said.
But importers of Asian material suffered during the first quarter of the year as European spot prices declined to breakeven levels for the importers of just above the Eur900/mt mark just as their material arrived.
"It does not take much to scare of importers," an Indian producer and importer of Etac to Europe said at the time.
High freight rates and good domestic demand have made it more economic to keep product in Asia.
"I still think there will be imports. Not much but like last time, enough to help the tightness but we'll have to see," a second source said.
