17 June 2008 17:22 [Source: ICIS news]
HOUSTON (ICIS news)-- Two major US acetone producers have secured a settlement for second-quarter methyl methacrylate (MMA) acetone barge contracts with one large buyer, the buyers and sellers said on Tuesday.
"We settled second-quarter barge contracts up 6 cents/lb [$132/tonne, €86/tonne] with two sellers," the large buyer said.
The buyers and sellers wished to remain unnamed following more than three months of lengthy and difficult negotiations amid high upstream costs and weak demand.
Barge acetone is sold to large buyers who use it to produce MMA. Major large buyers include Lucite, Rohm and Haas and Evonik. Acetone sellers include Shell, ?xml:namespace>
Buyers and sellers have been in a standoff on second-quarter negotiations since March.
Sellers had proposed hikes of up to 10 cents/lb on the back of high raw material costs.
It was not yet known if the rest of the industry would settle at this level.
If the other buyers accept this settlement, the Q2 contract price would be 53.5 cents/lb, according to data from global chemical market intelligence service ICIS pricing.
($1 = €0.65)
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