Europe Sept acetone MMA up €82/tonne on high propylene costs

04 September 2012 15:32  [Source: ICIS news]

LONDON (ICIS)--The September European acetone methyl methacrylate (MMA) contract price has been agreed at an increase of €82/tonne from August because of higher propylene costs, market sources said on Tuesday.

The price was agreed at €950/tonne ($1,203/tonne) FD (free delivered) NWE (northwest Europe).

A major producer said that it had different views in terms of supply and demand with its customers.

Phenol demand is low and therefore [phenol and acetone] production has been reduced,” the producer said. "Phenol is in low demand, but acetone demand in Europe is good especially the solvents sector, as well as exports,” he added.

The producer described acetone in Europe as “balanced to tight” but accepted that it had not been possible to push for more of the propylene increase.

Meanwhile, a major buyer saw the purported market tightness to be artificially created because of weak phenol demand and not because demand for acetone was strong.

“I have accepted €950/tonne,” said a major consumer.

“I could agree to a raw material adjustment, but no more.”

The September propylene contract price settled at €1,160/tonne FD NWE, up by €105/tonne from August.

($1 = €0.79)

By: Julia Meehan
+44 20 8652 3214

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