The European acetic acid price has increased Eur15/mt ($16/mt) from mid-December as result of the lagging effect of a bullish methanol market in December, sources said.
The AA price in Europe was assessed at Eur530/mt ($564/mt) FD NWE Thursday, up Eur5 on the week.
The methanol price was assessed at Eur323/mt FOB Rotterdam Thursday, increasing Eur4 from the first trading session of 2017 on January 3.
Although the the rise in January has been modest, the increase in methanol prices through December has been significant. In December, the methanol price rose 20% to Eur319/mt on December 30 from Eur266/mt on December 1, rising 20% during the month.
In contrast, the AA price only increased Eur5/mt during December.
A source said that the European AA market had been quiet since the second half of December because of the festive season. He added that the impact of high methanol prices in December was finally being felt in the European market with a lag.
A second source said that some participants were still closing December business this week and it was unclear where January prices would settle.
"But, for sure, acetic acid price will go up [in January]," he said.
In the contract market, offers were heard to be increasing Eur50-Eur70/mt in January on a FCA basis, tracking the hike in the methanol contract price in the first quarter.
The methanol Q1 CP was fully settled at Eur355/mt, Eur107 or 43% higher than Q4's.
