US acetone sellers aim for 5 cts/lb lift, reduce rates

23 May 2008 17:48  [Source: ICIS news]

HOUSTON (ICIS news)--US acetone sellers issued 5 cents/lb ($110/tonne) price hike initiatives to the solvent and distributor market effective 1 June due to high energy and operating costs,, buyers said on Friday.

If the hikes are accepted, truck prices will move to 61 cents/lb (€861/tonne) DEL (delivered), prior to discounts or incentives, according to data from global chemical market intelligence service ICIS pricing.

Surging feedstock costs were the reason given for the hikes, a buyer said.

“Acetone prices have yet to catch up with feedstock costs,” a seller said. “Acetone prices have risen 15% in the same time that oil prices have doubled.”

Sellers in recent weeks have talked of adjusting operating rates because of poor economics.

No operating rate numbers or definite dates for returning to full capacity were given, but sellers said they were monitoring contract demand against feedstock costs and adjusting rates accordingly.

Major US acetone sellers include Shell, Georgia Gulf, INEOS Phenol, Sunoco Dow Chemical and JLM.

($1 = €0.64)

For more on acetone visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect
For more on acetone visit ICIS chemical intelligence

By: Heather McGuire Doyle
+1 713 525 2653

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