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
713-525-2600



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

ICIS news FREE TRIAL
Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index