Tight Supply and Market Uncertainty Drive Ethyl Acetate Prices Up in Europe



Ethyl acetate (ETAC), an ether of acetic acid and ethyl alcohol, finds application in various products and industries. Such versatility makes prediction of ETAC market behaviour a complex task, which might foster a feeling of uncertainty for its manufacturers and suppliers. These manufacturers are mostly located in the Asia-Pacific region.

Ethyl Acetate: structure of the global production by country (2014)

ETAC RUS

Having stressed the predominance of ethyl acetate producers from Asia Pacific, it is nevertheless important to recognize the complexity of ETAC capacity expansion dynamics in Europe, especially when Ineos plans a major ethyl acetate capacity build-up in 2017 (the project is being supported by fracked gas supplies from America, which began in early October 2016). After the project by Ineos is realized, this company will become a key supplier of ethyl acetate on the European market. However, in the foreseeable future, the project’s prospect might be overshadowed by the fallout from the Brexit consequences, which increased general uncertainty on the UK and EU chemical markets. Ineos Group director Tom Crotty was among the UK chemical industry representatives who warned that the shared benefits of the common EU market, availability of skilled labour and the secure supply of energy might suffer after the UK public vote.

Currently, the ETAC market in Europe is characterised by tight supplies from Asian manufacturers, who withheld large amounts of the product due to low prices back in spring and summer. Such policy created a shortfall of ethyl acetate on the European market, which is now poised to replenish ETAC stocks. The time lag between demand growth and supply further exacerbates the situation as many ETAC producers are still apprehensive to increase production unsure of the short-term prospects of the market. This provides further upward pressure on prices, though the situation might be viewed as temporary since further production capacity expansion is expected and capacity utilization rates are on the rise.

More information on the ETAC market can be found in in-demand research study “Ethyl Acetate (ETAC): 2016 World Market Outlook and Forecast up to 2020”.