10 January 2013 15:37 [Source: ICIS news]
LONDON (ICIS)--The January acetone methyl methacrylate (MMA) contract price has decreased in line with feedstock propylene, market sources said on Thursday.
The January contract price has settled at €880/tonne ($1,143/tonne) FD (free delivered) NWE (northwest Europe), down €10 from the previous month.
A contract settler said: “I accepted from a seller at €880/tonne.”
A major producer also confirmed that it had agreed a contract price at the same figure, while other sources in the market also knew about the settlement.
A trader said it was largely the result of the €13/tonne drop in propylene.
“On the contract price I heard minus €10/tonne. So it’s more or less the propylene decrease which is fair enough”.
Meanwhile, in the acetone spot market, prices have reached a floor, according to most participants.
Spot acetone was valued in the mid-to-low €800s/tonne this week.
Demand has improved, but not as much as some re-sellers had hoped for. Nonetheless, reduced operating rates on phenol are keeping inventory levels low.
“I bought some product this week and I sold some too. Looking at free delivered prices, acetone is around €830-840/tonne. Customers know this is the market price and there is less availability than in November and December,” a trader source said.
Another trader, who also valued spot acetone at a similar level said: “I’ve seen a lot of customers coming back this week asking for product. We are balanced, but I don’t expect to see too much acetone available.
“There is no product available for export. We are asking everybody for volume but it’s looking like the tightness is up and coming,” he added.
The trader valued spot acetone at €820-860/tonne.
($1 = €0.77)
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