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                                European acetic acid suppliers eye March price rise

                                Suppliers of European Acetic acid are eyeing price increases for March on the back of stronger feedstock costs and a weak euro which was putting pressure on the cost of imports, sources said Thursday. 

                                "We are looking for increases next month to account for the increases upstream. Imports are also more expensive and this is causing supply to tighten as we're not see the usual volumes coming in," one supplier source said. 

                                There was talk of a Eur50/mt ($57/mt) increase for March, another supplier source said, adding February contract prices were settled at an average of Eur510/mt in Europe. 

                                Feedstock Methanol prices have been on an uptrend this month. 

                                Spot prices were assessed at Eur298/mt FOB Rotterdam Wednesday, up 6% since the start of February. 

                                Any price rises could be resisted. "Fundamentals are simply not there to support any price rises. There is a lot of [acetic] acid around and little demand to absorb it," a consumer source said. "I see little justification for any increases."

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