31 January 2011 18:12 [Source: ICIS news]
LONDON (ICIS)--The European February acetone methyl methacrylate (MMA) contract price has settled at €903/tonne ($1,220/tonne), up €28/tonne from January, as a result of higher feedstock propylene costs and tighter supply, a major producer and a major consumer said on Monday.
The acetone MMA contract was settled on a free delivered (FD) northwest Europe (NWE) basis.
The €28/tonne month-on-month increase was largely driven by the net €28/tonne monthly increase in the February propylene (C3) contract price.
In relation to the February contract price, the major buyer said: “I have agreed to accept a full propylene increase for the February contract price of €28/mt over January, which results in €903/mt.
“Whereas the January price reflected some acetone market and availability factors, the current demand in both propylene and acetone made it not possible for me to accept any other than at least a raw material adjustment for February.”
The major producer involved in the settlement said: “I confirm having settled the February MMA price at €903/mt. This means we have passed the entire C3 increase to the MMA. Raw material developments, overall acetone price increases and less availability are the main reasons for having reached this settlement.”
Acetone is a by-product of phenol.
($1 = €0.74)
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