25 September 2009 20:55 [Source: ICIS news]
HOUSTON (ICIS news)--A price increase in October for US methyl isobutyl ketone (MIBK) seemed certain, but sellers and buyers were uncertain about the magnitude, sources said on Friday.
Current US prices for MIBK were 83-88 cents/lb ($1,830-1,940/tonne, €1,244-1,319/tonne), according to data from global chemical market intelligence service ICIS pricing.
Sellers were suggesting price increases of 5-10 cents/lb for October, depending on the supplier, a source said.
Buyers continued to say that a proposed 10 cent/lb hike commencing on 1 October would be premature, as September contract negotiations were still ongoing.
US-based Dow Chemical said last week it needed increases because of the "relentless rise and ongoing volatility in feedstock".
Most sources conceded that there was continued upward price pressure on MIBK from rising raw materials, but added that demand was far below last year's levels.
Some buyers said that momentum and feedstock pressure could push up October prices, although perhaps not by the 10 cents/lb originally proposed.
US MIBK producers include Dow Chemical, Eastman Chemical and Celanese.To discuss issues facing the chemical industry go to ICIS connect
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