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.
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)
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