01 October 2007 15:39 [Source: ICIS news]
Talking on the sidelines of the European Petrochemical Association conference in Berlin (EPCA), some producers said they would look for an increase over the third-quarter contract level of €920/tonne ($1,308/tonne) FD (free delivered) NWE (northwest Europe), due a number of factors, including the €10/tonne rise in upstream propylene (C3) and the need to recover margins.
“I think the plus €10/tonne is guaranteed and I will not settle for less than that,” said one producer.
The seller, which reported being tight on supplies, said it would push for increases over €10/tonne.
However, certain buyers said they would resist higher prices.
“We guess the producers will try to get at least plus €10/tonne for acetone,” said one major buyer yet to start negotiations. Stating that the current market did not support an increase, the source added: “We will target a rollover.”
The buyer said the market was, and would likely remain balanced, despite the ongoing shutdown of INEOS Phenol in ?xml:namespace>
Moreover, the purchaser said downstream demand was steady and availability was not a problem as it could secure any quantities it needed without issue.
Fourth-quarter acetone MMA contracts are likely to be finalised in the coming weeks.
Acrylic mouldings, flat screens, solvents and extrusion compounds are among the possible uses of acetone.
($1 = €0.70)
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