07 January 2013 22:17 [Source: ICIS news]
HOUSTON (ICIS)--Sellers are looking to push US January truck acetone prices higher, but they may need to wait until the middle of the month to see any changes, sources said on Monday.
Several producers and distributors said they are seeking price increase nominations of 5 cents/lb ($110/tonne, €84/tonne) for early or mid-January.
“There’s still a lot of cheap material floating around, so I don’t think the nominations are sticking yet,” a distributor said. “There’s inventory from the end of the year.”
The distributor added that it is seeing bids for material in the 58-62 cents/lb level on a delivered basis.
This would track to a 66-70 cents/lb level on a pre-discount basis, slightly lower than the current ICIS assessment of 68-72 cents/lb.
Producers said that if the nominations go through, it would push prices to the mid-70s cents/lb level on a pre-discount basis.
Several producers said that with feedstock refinery-grade propylene (RGP) prices spiking and acetone supply tight, they expect the nominations will find traction by the end of the month.
“We haven’t seen too much activity on the truck market,” a producer said. “What little we’ve done has been higher than before.”
Major US acetone producers include Georgia Gulf, Haverhill Chemical, Honeywell, INEOS Phenol and Shell Chemical.
($1 = €0.76)
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