NewsFlashUS MMA acetone settles up 6 cents/lb

07 July 2008 18:20  [Source: ICIS news]

HOUSTON (ICIS news)-- The initial large-buyer barge methyl methacrylate (MMA) acetone settlement became industry wide as participants accepted plus 6 cents/lb ($132/tonne, €84/tonne) for second-quarter contracts, the parties confirmed on Monday.

The second-quarter barge MMA acetone price moved to 53.5 cents/lb, according to data from global chemical market intelligence service ICIS pricing.

Rohm and Haas, Lucite and Evonik are among the major buyers involved in the barge acetone negotiations. Shell, INEOS Phenol, Georgia Gulf and Dow Chemical are among the sellers.

Third-quarter negotiations have begun in earnest, with sellers pushing plus 20 cents/lb on the back of record natural gas and propylene costs.

The large-buyer price has settled at the end of the quarter almost every time for over three years now, a seller said.

At least one major buyer and two sellers will move to monthly prices during third quarter.

“In the current energy and feedstock environment our business can no longer withstand the risk associated with not having a timely settlement,” a large buyer said.

It remained to be seen if the rest of the industry would switch to monthly negotiations.

($1 = €0.64)

For more on acetone visit ICIS chemical intelligence
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By: Heather McGuire Doyle
+1 713 525 2653

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