03 November 2011 11:13 [Source: ICIS news]
LONDON (ICIS)--The European November acetone methyl methacrylate (MMA) contract price has settled at €824/tonne ($1,129/tonne), down by €48/tonne from October, on the back of another drop in the value of propylene and increased availability, with additional pressure coming from the spot market, a major producer and major consumer said on Thursday.
The acetone MMA contract was settled on a free delivered (FD) northwest Europe (NWE) basis.
The major producer said that its customer had been pushing for a reduction greater than €48/tonne because of market length, partly caused by a lack of export opportunities.
However, the producer said that it would rather “lower production” than drop its price further.
The major consumer had originally been targeting a decrease of €55–60/tonne, the producer added.
Meanwhile, in the acetone spot market, prices have eroded week on week on a combination of weak demand in the solvents sector, growing inventory levels, a lack of export opportunities and destocking.
Spot acetone is currently valued at either side of €700/tonne FD NWE.
During the same period last year, spot acetone was valued at €640–700/tonne FD NWE, while the November MMA acetone contract was agreed at €788/tonne FD NWE.
($1 = €0.73)
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