Europe June acetone MMA down €112/tonne on lower propylene

29 May 2012 15:55  [Source: ICIS news]

LONDON (ICIS)--The June European acetone methyl methacrylate (MMA) contract price has fallen by €112/tonne from May because of weaker propylene and a better supplied market, sources said on Tuesday.

The June settlement was agreed at €914/tonne ($1,143/tonne) FD (free delivered) NWE (northwest Europe).

"Propylene came down by €125/tonne and it’s now the same price as February", a major producer said.

"The MMA contact in February was €898/tonne, but I can’t deviate from the C3 [propylene] price." 

The producer agreed with its customer that the European acetone market was no longer tight, as in February when the market was plagued by production problems across Europe.

“The market is no longer tight, but it’s not long either. I see it as more in balance,” the produce concluded.

On the buying side, a major consumer confirmed that it had agreed its June MMA acetone contract at €914/tonne.

“I have accepted €914/tonne,” it said.

The buyer was hoping to achieve a reduction greater than €112/tonne, but since the market was balanced and offers of spot were not so attractive it settled at €914/tonne.

Both parties agreed that the trend for June moving into July was that the market would move from a balanced to long position, which in turn would see spot prices falling.

Spot acetone in Europe is currently valued in the mid €900s/tonne, coming off highs of €1,150-1,250/tonne in early March when spot availabilty was scarce.

($1 = €0.80)

By: Julia Meehan
+44 20 8652 3214

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index