US MEK moves up 3 cents/lb on feedstock pressure

19 April 2010 19:32  [Source: ICIS news]

HOUSTON (ICIS news)--A 3 cents/lb ($66/tonne, €49/tonne) rise in the US contract price for methyl ethyl ketone (MEK) drew little opposition, a buyer said on Monday, resulting largely from feedstock pressures.

Current US MEK prices were 80-84 cents/lb, according to data from global chemical market intelligence service ICIS pricing.

A spate of cracker outages beginning early in the year had tightened raw materials within US MEK and other markets.

At least two US crackers were still off line for maintenance, but Chevron Phillips Chemical on Monday began the restart of its Cedar Bayou cracker in Houston.

Going forward, near-term contract pricing appeared stable in the absence of May price initiatives. This came despite demand described as slightly improved in recent weeks, sources said.

A producer said some market participants had forecast the US solvents market uptrend to end weeks ago, but there was still some buy-side concern that MEK contract prices would continue to rise, potentially prompting increased near-term buying interest.

The MEK spot market was less predictable – “crazy”, one buyer said - with truck and rail prices heard in a wide range of below 70 cents/lb to slightly above 80 cents/lb.

“I can't see the high spot pricing holding”, the buyer said. “The market can't hold a long-term increase. I feel prices will come down to meet foreign markets.”

($1 = €0.74)

For more on MEK visit ICIS chemical intelligence
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By: Larry Terry
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