18 June 2008 18:18 [Source: ICIS news]
HOUSTON (ICIS news)--Buy and sell ideas for US Gulf acetone were up 7 cents/lb ($154/tonne, €99/tonne) on Wednesday from last week due to tight supply and record feedstock costs, industry sources said.
A trader said June barges were offered for 55 cents/lb, while July was offered up to 60 cents/lb.
A producer said their plant had no material available but if they did it would sell in the high 50s cents/lb.
“With propylene at 73 cents/lb, acetone is 57 cents/lb with no margin,” another producer said. “If product does not sell higher than the feedstock yield, the producer is losing too much money.”
Spot prices one week ago were 48-52 cents/lb FOB (free on board) US Gulf, according to global chemical market intelligence service ICIS pricing.
US acetone sellers have had to reduce production rates for economic reasons as feedstock refinery grade propylene (RGP) has nearly doubled this year, but buyers had been resistant to any hikes.
RGP spot prices were assessed at 73.5 cents/lb on Tuesday.
Although acetone supply was long early in the year, it is now snug due to the reduced rates, the trader said.
Major large buyers include Lucite, Rohm and Haas and Evonik. Acetone sellers include Shell, ?xml:namespace>
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