Q1 MMA acetone contracts slide 2 cents/lb in US

15 February 2006 20:09  [Source: ICIS news]

HOUSTON (ICIS news)--The first-quarter US barge methyl methacrylate (MMA) acetone contract price has been set at 36.5 cents/pound ($804 or Euro676/tonne), down 2 cents from the fourth quarter for a full industry-wide settlement, buyers and sellers confirmed on Wednesday.

Barge MMA acetone is used to produce MMA. Major US MMA acetone producers include Ineos Phenol, Shell, Sunoco, Georgia Gulf, Dow and JLM. Major MMA acetone buyers who produce MMA include Rohm & Haas, Lucite and Cyro.

Barge MMA acetone spot prices have been falling since December due to excessive inventories in three regions, volatile propylene prices and slower than expected demand, sources said.

Beginning in December, spot prices for MMA acetone dropped below the contract price of 38.5 cents/pound to the low 30s cents/pound. A few spot deals were transacted at 32 cents/pound in January, according to ICIS-LOR.

Players said MMA acetone supply has been building and demand is not strong. MMA producers said that their acetone inventories were high as a result of operational problems in 2005 and outages caused by hurricanes Katrina and Rita.

However, feedstock prices and MMA demand are both expected to increase in late February-early March, bringing the US MMA acetone price back up.


By: Heather McGuire Doyle
+1 713 525 2653



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

ICIS news FREE TRIAL
Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index