22 March 2010 09:29 [Source: ICIS news]
SINGAPORE (ICIS news)--The Asian acetone market is poised to remain soft due to ample supply, languid demand and falling domestic values in the key China market, industry sources said on Monday.
Spot prices slipped $20/tonne (€15/tonne) to $910-1,010/tonne CFR (cost and freight) China on 19 March, according to global chemical market intelligence service ICIS pricing.
Buying sentiment was subdued amid a supply glut in the China market, traders said.
Acetone inventory in eastern China was estimated to be over 40,000 tonnes, about four times higher than what it was before the Lunar New Year holidays and had been exerting a downward pressure on prices, they added.
Soft Chinese domestic values, which placed the import equivalent for acetone in the high-$800s/tonne CFR China, also dampened buying interest for imported cargoes, buyers and sellers said.
"It’s hard to find serious buyers as everyone seems to be saddled with inventory and expecting further price declines," a northeast Asian trader said.
The main use of acetone is in the manufacture of acetone cyanohydrin, a feedstock for methyl methacrylate (MMA). The other major and fast growing derivative is bisphenol-A (BPA). Both MMA and BPA are feedstocks for the production of resins and plastics.
($1 = €0.74)For more on acetone visit ICIS chemical intelligence
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