US June barge acetone contract fully settled at fall of 15%

24 June 2011 21:02  [Source: ICIS news]

HOUSTON (ICIS)--The June US barge acetone contract price fully settled at a decrease of 15% from May levels, buyers and sellers said on Friday.

The June barge acetone price was settled at 65.5 cents/lb ($1,444/tonne, €1,011/tonne) DEL barges (delivered via barges), down from May’s record settlement of 77 cents/lb, as assessed by ICIS.

Market participants had expected the June contract price to fall significantly because of weakening feedstock propylene values.

Spot refinery-grade propylene (RGP) prices fell below 70 cents/lb at the end of June, widening the gap against contract propylene to more than 10-12 cents/lb.

Another factor pushing June barge acetone significantly lower was the May contract settling at a record high.

During May negotiations, the US propylene contract price was at a record high throughout the month, but spot RGP prices fell by almost 20 cents/lb during the month.

That disconnect within the propylene market led to a wide gap in acetone price ideas from buyers and sellers.

With buyers able to settle the May acetone contract at a record high, most market players felt the June price would have to come down.

The US barge acetone contract price is negotiated between three large acetone sellers - Georgia Gulf, INEOS Phenol and Shell Chemical - and the three largest methyl methacrylate (MMA) producers - Dow Chemical, Evonik and Lucite.

Acetone is a key feedstock for MMA production.

($1 = €0.70)

To learn more about acetone visit ICIS chemical intelligence

By: John Dietrich
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