30 September 2011 15:35 [Source: ICIS news]
LONDON (ICIS)--The European October acetone methyl methacrylate (MMA) contract price has settled at €872/tonne ($1,178/tonne), down €16/tonne from September, following a drop in the cost of feedstock propylene and because of healthy supply, a major producer and consumer said on Friday.
The producer said it could not accept a decrease of anything above €16/tonne. “Although the acetone market in Europe is indeed well supplied, we are achieving good netbacks in other parts of the world. Product is being sold in those areas instead of in Europe and prices in Europe are therefore stable, not softening.”
Meanwhile, the major consumer said: “I have agreed to a price of €872/tonne with a large supplier for October.”
The buyer said it had fought hard for a reduction over and above the propylene reduction because it sees the acetone market as being long, adding that it had been a combination of the raw material decrease, as well as market sentiment which had made it accept the offer.
In the acetone spot market, values are largely being quoted in the range of €710-760/tonne, down by €80/tonne since September on good availability and slightly reduced demand levels from the European market.
The contract was settled on a free delivered (FD) northwest Europe (NWE) basis.
Acetone is used as a solvent and as a precursor to MMA.
($1 = €0.74)
For more on acetone visit ICIS chemical intelligence
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