Asian acetic acid import prices continued to be on an uptrend mainly due to tight supply,
market sources said Friday. Arbitrage economics from China to the rest of Asia was not
workable while regional AA plants were running at normal rates, resulting in no surplus barrels,
sources said. Traders, however, pointed out that they were increasingly feeling the pressure to
sell amid weak demand ahead of the Chinese Lunar New Year holidays. Domestic prices fell
Yuan 100/mt at Yuan 2,800/mt ex-tank. Taking a long term view, some sources said the flow of
acetic acid and VAM to Asia from the Middle East might increase with the strengthening of the
US dollar, as the competitiveness of Middle East imports into Europe declines with the
weakening euro.
RATIONALE:
AA: The CFR Far East Asia marker was assessed at $425/mt, up $5/mt week on week, with
selling ideas heard at $430/mt CFR. There were no buying ideas heard.
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