14 August 2009 14:23 [Source: ICIS news]
“I have not fixed a settlement but I would be able to agree to an increase if another [contract settler] is willing to accept the same range,” said a major acetone consumer. “It’s a difficult time for all of us so the €35/tonne ($50/tonne) is logical,” he added.
Meanwhile, a major producer said that it had settled its August MMA acetone contract at €589/tonne FD (free delivered) NWE (northwest ?xml:namespace>
“We tried to get more of the €35/tonne [the propylene increase] but this was impossible,” confirmed the producer. “The market is tight and September will be very tight because of all the shutdowns,” he added.
The producer had originally been targeting an increase of €40/tonne in order to recover the full €35/tonne increase in the August propylene contract as well as recovering some more of the July propylene increases.
The July acetone MMA contract increased by €64/tonne, while the July propylene contract increased by €85/tonne, according to global chemical market intelligence service ICIS pricing.
It was not possible to pass on the full propylene cost in July because of the competitive field of the MMA market, producers and consumers confirmed.
The acetone MMA contract price typically mirrors developments in the propylene contract, with supply and demand dynamics also playing an integral role.
($1 = €0.70)
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