09 July 2012 23:02 [Source: ICIS news]
HOUSTON (ICIS)--US July truck acetone prices are being pressured higher by producers, who are citing tight supply, sources said on Monday.
However, traders and distributors said it will take some time to see if producers’ efforts are successful.
However, by the end of June, producers and distributors said prices fell to the low-50s cents/lb DEL trucks.
For July, several producers announced price increase nominations of 5 cents/lb, which they said would push prices to the low-60s cents/lb level.
“We will not be participating in the lower markets,” a producer said. “If someone wants our material, they’ll be paying our price.”
The producers said the nominations are slated to take effect between Monday and 15 July.
Distributors and resellers were taking a wait-and-see approach regarding where the market will go.
“Producers tell us supply is tight, but I’m not seeing that myself,” a distributor said. “However, I think these price increases will find some traction.”
Distributors added that demand for acetone in the truck market - which is typically used for solvent applications - is not strong.
Major acetone producers include Georgia Gulf, Haverhill Chemical, Honeywell, INEOS Phenol and Shell Chemical.
($1 = €0.82)
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections