US August barge acetone contract fully settles flat on supply

22 August 2011 17:39  [Source: ICIS news]

HOUSTON (ICIS)--The US August barge acetone contract price fully settled at a rollover, sources said on Monday, tracking longer domestic and overseas supply and stable feedstocks.

The August contract price settled at 61 cents/lb ($1,345/tonne, €941/tonne) DEL barges (delivered via barge), flat with July levels, as assessed by ICIS.

It is the first time the contract has settled at a rollover since October 2010.

The biggest reason for the rollover was the increased supply of acetone on the market, a producer and buyer each said.

The barge contract is usually designated for large buyers, mostly from the methyl methacrylate (MMA) market. Demand from the non-MMA and export markets has softened, pushing acetone supply longer.

In addition, a buyer reported receiving several offers for import material at prices competitive with US producers.

Also, demand for acetone from the MMA market remains healthy, as MMA producers are running full-out in order to fill orders.

Prices for the key acetone feedstock, refinery-grade propylene (RGP), were also largely steady during August.

The US barge acetone contract is settled between three major acetone producers – Georgia Gulf, INEOS Phenol and Shell Chemical – and the three largest MMA producers – Dow Chemical, Evonik and Lucite.

($1 = €0.70)

For more on acetone and MMA visit ICIS chemical intelligence

By: John Dietrich

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