05 April 2012 20:17 [Source: ICIS news]
LONDON (ICIS)--European acetone spot prices have eased for the first time since 2 December last year as supply improves and demand remains flat, market sources said on Thursday.
Spot acetone prices had risen by 75% since then, on the back of better-than-expected demand as well as planned and unplanned outages across Europe.
But this week lower prices were recorded.
From a range of €1,150-1,250/tonne ($1,513-1,645/tonne) FD (free delivered) NWE (northwest Europe), spot prices were down by €10-30/tonne.
One producer said: “[In terms of demand] April looks better than March but I did not go for very high spot prices. My price is around €1,150/tonne plus. Demand is normal, but I have a feeling that I could be selling more.”
Another European producer described the acetone spot market as being in a “critical situation” because prices were around 30% lower in Asia.
“If prices move up any more in Europe, Asia will start moving product here.
In the distribution market, sources agreed that they have seen spot prices eroding this week.
“I’ve seen prices coming down. €1,190-1,200/tonne is our price this week, but we see healthy demand,” said one trader.
Another trader said, while it has seen prices “coming off” they were “not collapsing”. The trader did not feel the need to bring his prices below €1,160/tonne FCA (free carrier), but said that demand this week had been slow.
A third trading source said: “Nobody is paying more than €1,200/tonne. Cargo is available and we see prices €20-30/tonne lower, although I would have loved to have seen them higher."
($1 = €0.76)
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