Producers say reduced exports to Asia and Latin America have left North America oversupplied.
EA producers in the former Soviet Union are shipping excess capacity into Western Europe and have flooded the market, sources say. Despite the demand slowdown, producers say they will proceed with planned capacity expansions. However, market watchers are skeptical that the company will complete the project. Conventional processes produce EA from ethanol and acetic acid and BA from butyl alcohol and acetic acid. Toll manufactured for BP Amoco.