Europe May acetone MMA contract at record high on C3 costs, tightness

03 May 2011 16:47  [Source: ICIS news]

LONDON (ICIS)--The European May acetone methyl methacrylate (MMA) contract price has settled at a record high of €1,024/tonne ($1,528/tonne), up €33/tonne from April, driven by rising propylene (C3) costs and ongoing market tightness, a major producer and a consumer said on Tuesday.

The acetone MMA contract was settled on an FD (free delivered) NWE (northwest Europe) basis.

“I can confirm that I have accepted the proposal of a supplier to increase by €33 to €1,024/tonne on a net basis,” the consumer said.

The consumer said the increase was accepted for two reasons: a hike in propylene prices and perceived tightness of acetone in reaction to current maintenance shutdowns and others set to follow during the next few weeks.

The producer also cited market tightness as one of the main reasons for the €33/tonne price increase.

“Acetone is still tight and will remain tight for some time. Although availability is a bit better than past months, it is my opinion that this is mainly because of incidental issues,” he said.

However, the producer sees the alleviation in availability to be short-lived and expects to see the market encountering the “same poor availability” as in previous months because of various planned shutdowns in Europe.

“Prices in the US are really high, so importing acetone from there is not wise and Asia product is difficult to get,” he added, saying that spot prices would keep increasing, “especially in the southern and eastern parts of Europe”.

Outages planned in Europe during spring and summer include Madrid-headquartered CEPSA Quimica’s shutdown of Line No 3 in Huelva, Spain, for at least two weeks in May for planned maintenance. Line No 3 is CEPSA Quimica’s largest and newest line, with capacity to produce 250,000 tonnes/year of phenol and 155,000 tonnes/year of acetone.

Caprolactam (capro) producer Domo Chemicals will have a planned turnaround at its plant in Leuna, eastern Germany, in the second half of May until the first half of June. The plant has capacity to produce 150,000 tonnes/year of phenol and 90,000 tonnes/year of acetone.

Rome-headquartered Polimeri Europa will have a planned shutdown at its Mantova facility in northern Italy from early June until early July. The plant has capacity to produce 300,000 tonnes/year of phenol and 185,000 tonnes/year of acetone.

French chemicals company Novapex will have a planned shutdown at its facility in Roussillon, southeast France, in August. However, this could be brought forward. The company has a capacity to produce 175,000 tonnes/year of phenol and 108,000 tonnes/year of acetone.

Global producer INEOS Phenol will shut its Antwerp, Belgium, facility for planned maintenance in the second half of September for two weeks. The facility has capacity for 680,000 tonnes/year phenol and 415,000 tonnes/year acetone.

Acetone spot prices in Europe are also at a record high. The most recent price range in the market was recorded at €1,100–1,185/tonne FD NWE.

In southern Europe, particularly Italy, spot acetone was on offer in excess of €1,250/tonne FD.

($1 = €0.67)

For more on phenol and capro, visit ICIS chemical intelligence
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By: Julia Meehan
+44 20 8652 3214

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