01 September 2011 14:55 [Source: ICIS news]
LONDON (ICIS)--The European September acetone methyl methacrylate (MMA) contract price has settled at €888/tonne ($1,269/tonne), down €32/tonne from August, following a drop in spot acetone prices and a lower propylene contract, a major producer and consumer said on Thursday.
The producer said: “On a gross basis the contract went down by more than the C3 [propylene] decrease.” It said this was because availability had improved, but added that demand was still “good”.
Meanwhile, the major consumer said it had been pushing for more of a reduction but was faced with some resistance since its supplier saw the MMA contract price influenced by propylene and not spot price developments.
The buyer said it would be procuring less acetone in September because of a partial shutdown at one of its European MMA plants.
In the acetone spot market, soft summer demand from the solvents sector coupled with competitively priced offers of imported material have created downward price pressure in recent months.
Since the start of July, spot acetone prices have fallen by 20% to €790-840/tonne.
One supplier felt that spot acetone remained under pressure this week because of competitively priced material from Asia and the US.
The contract was settled on a free delivered (FD) northwest Europe (NWE) basis.
($1 = €0.70)
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