CHEM-NET FACTS 1 NOVEMBER 2013 CHEMICAL MARKET INSIGHT AND FORESIGHT - ON A SINGLE PAGE Tel: +44 20 7924 3955 Fax: +44 20 7978 5307 Email: subscriptions@orbichem.com Web: www.orbichem.com Acetic Anhydride US acetic anhydride prices remained flat in the first half of October, but later in the month market conditions began to change. Spot methanol prices jumped up to 160 c/gal during the week of 21-25 October, and November methanol contract prices were settled up 15 c/gal to 174-180 c/gal by major producers. Celanese issued an 8% price increase for core grades of acetate tow, effective 1 January 2014, on an FOB plant basis. Consumers have resisted price increase attempts during 2013, but pressure from feedstock prices was increasing. Eastman’s internal acetic anhydride consumption will increase in 2014 as the company plans to expand its “Triton” copolyester capacity. Sep-2013 ¢/lb 84.00-87.00 €/ton 930-950 Rmb/ton 4800-4900 US PRICES Domestic WEST EUROPE PRICES Domestic Bulk ASIA PRICES China Domestic Oct-2013 ¢/lb 84.00-87.00 €/ton 930-950 Rmb/ton 4800-4900 Oct-2013 $/ton 1852-1918 $/ton 1269-1296 $/ton 786-803 DDP DDP EXW Short-Term Price Trend Æ Æ Ç Rmb/ton prices include VAT at 17% US Dollars per Ton ACETIC ANHYDRIDE PRICES : 2 YEAR SPAN 2250 2000 1750 1500 1250 1000 Europe’s acetic anhydride prices for Q3 were settled at a rollover compared to the second quarter, continuing a market trend stretching back over almost two years. Even though there were no official price increases announced for October, one acetic anhydride consumer said it expected producers will use the feedstock prices as justification for an increase during Q4. The two key raw materials for acetic anhydride – acetic acid and methanol – were beginning to increase in October. The Q4 methanol contract price increased to €408/ ton fob Rotterdam, up €18/ton compared to the Q3 total, and acetic acid spot prices were also increasing. In China, acetic anhydride prices increased slightly in October due to upstream feedstock price increases. Although the price increased, high feedstock prices and sluggish demand meant profits were not good during October and the average operating rate decreased to around 30%. At the end of October, the acetic anhydride price in East China was Rmb49005000/ton ex work, Rmb5200-5250/ton delivered in Middle China while Rmb50005100/ton delivered in North China. 750 500 In Conversion to US$ the 17% VAT Element in Chinese Rmb Prices has been Excluded for Comparative Purposes 250 ov N c De 20 b Fe 12 ar M r Ap ay M n Ju l Ju g Au p Se O ct ov N Product Location Definition Acetic Anhydride Acetic Anhydride Acetic Anhydride United States West Europe China Domestic DDP Domestic Bulk DDP Domestic EXW US Dollars per Ton c De 20 13 b Fe ar M r Ap ay M n Ju l Ju g Au p Se O ct ACETIC ANHYDRIDE PRICES : 10 YEAR SPAN 2250 2000 1750 1500 1250 1000 750 500 In Conversion to US$ the 17% VAT Element in Chinese Rmb Prices has been Excluded for Comparative Purposes 250 2004 2005 2006 2007 2008 2009 Product Location Definition Acetic Anhydride Acetic Anhydride Acetic Anhydride United States West Europe China Domestic DDP Domestic Bulk DDP Domestic EXW 2010 2011 2012 2013 Short-Term Price Trends US anhydride prices expected to remain flat in Q4. Europe market seen as unchanged at the end of 2013. China’s prices increasing due to costs. Reproduction of any part of this work by any process whatsoever without written permission of Tecnon OrbiChem is strictly forbidden Disclaimer