11 January 2013 20:33 [Source: ICIS news]
HOUSTON (ICIS)--The US December barge acetone contract reached a full settlement at a rollover, sources said on Friday.
Buyers and producers said they have settled their public barge contracts at 53 cents/lb ($1,168/tonne, €876/tonne) on a DEL barge (delivered via barge) basis.
The rollover from November displeased sellers, who said price increases were in order.
“We don’t like the number at all,” a producer said. “But that’s where the public settlements ended up.”
Buyers said the December settlement was fair, considering year-end inventory destocking efforts had curtailed demand.
“There’s no need to drag out December,” a buyer said. “Get it done and push the increases into January.”
Spot prices for feedstock refinery-grade propylene (RGP) were mostly steady but moved slightly higher during the month.
Acetone supply remained tight as producers also looked to tighten inventories and operating rates were low.
However, demand from the key methyl methacrylate (MMA) market was softer as one producer experienced production issues and lowered its acetone intake.
The US barge acetone contract is negotiated between three large producers – Georgia Gulf, INEOS Phenol and Shell Chemical – and the three largest buyers – Dow Chemical, Evonik and Lucite.
($1 = €0.75)
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