Sentiment across the European acetyls chain turned bullish after Ineos announced plans to mothball its acetyls complex in Hull, UK, reinforcing concerns over tightening spot supply amid delayed import arrivals. Ineos said Sept. 22 it would idle its acetic acid and derivatives production in Hull, citing persistently high European energy and natural gas costs.
European acetic acid supply was heard to be tightening amid delayed vessel shipments from Asia, while elevated freight costs continued to pressure the Asia-Europe arbitrage. Rising feedstock methanol costs also pushed some domestic producers to run at reduced capacity.
Platts last assessed the methanol FOB Rotterdam five- to 30-day forward spot price at €449.75/mt Sept. 29, up €50/mt, or 12.5%, from the beginning of September. A trader raised acetic acid offer levels by €30-€50/mt for Southern Europe after the announcement.
In ethyl acetate (ETAC), market participants said the Ineos closure could leave Europe almost entirely dependent on imports at a time when key export regions such as the Middle East, Africa and Asia offer little spot material. Buyers' attention was expected to turn to US suppliers due to shorter lead times.
Challenging logistics, amid vessel shortages and shipment delays, alongside low Rhine water levels, further supported the bullish outlook.
