24 May 2012 20:28 [Source: ICIS news]
HOUSTON (ICIS)--US May barge acetone contract participants reached an initial settlement at a drop of 23% from April as a result of a fall in feedstock costs, sources said on Thursday.
The settlement was reached at 52.5 cents/lb ($1,157/tonne, €926/tonne) DEL barges (delivered via barges).
A producer described the initial settlement as balanced, citing strong demand and tight supply.
Buyers pointed out that since the start of April, feedstock refinery-grade propylene (RGP) spot prices have dropped by 28 cents/lb.
With April’s barge acetone settlement representing a 0.25 cent/lb increase over March, buyers felt the May price needed to be substantially lower.
The US barge acetone contract is settled between three large producers - Georgia Gulf, INEOS Phenol and Shell Chemical - and the three largest buyers - Dow Chemical, Evonik and Lucite.
($1 = €0.80)
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