03 December 2010 17:42 [Source: ICIS news]
LONDON (ICIS)--The European December acetone methyl methacrylate (MMA) contract price has been settled at €802.80/tonne ($1,056/tonne), up €14.10/tonne from November on rising feedstock and market fundamentals, a major producer and a major consumer said on Friday.
The acetone MMA contract was settled on a FD (free delivered) NWE (northwest ?xml:namespace>
The higher price was largely a result of the €22/tonne increase on the December propylene contract price, which was settled at €960/tonne FD NWE.
In relation to the acetone MMA settlement, the major buyer said: “I have agreed to my supplier’s proposal to not add the full propylene increase of €22/tonne to the November contract price, but rather reflect market fundamentals.”
The buyer said there was no problem with the supply of acetone, and while demand for MMA remained strong, an element of “networking capital optimisation” was taking place and customers were planning what to take in December.
The major producer said the December increase was driven by the increase in feedstock, but current market fundamentals were also taken into account.
There has been no availability issues in the acetone market for many months, largely as a result of phenol producers running at full rates because of strong demand for phenol derivatives.
Acetone is a by-product of phenol.
In the acetone spot market, prices were stable despite firmer propylene. Softer demand from the solvents sector and plentiful availability ahead of year-end would prevent prices from firming, sources agreed.
Acetone spot prices were steady at €625-685/tonne FD NWE.
($1 = €0.76)
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