22 January 2013 22:52 [Source: ICIS news]
HOUSTON (ICIS)--The US January barge acetone contract reached an initial settlement up 25% from December, sources confirmed on Tuesday.
A buyer and seller each confirmed reaching an agreement at 66.5 cents/lb ($1,466/tonne, €1,100/tonne) on a DEL barges (delivered via barges) basis.
The December settlement was reached at 53 cents/lb DEL barges.
“The price certainly could have been higher,” a producer said. “The run-up from propylene was so steep (that) it’s difficult to catch all of it.”
Feedstock refinery-grade propylene (RGP) prices have gained 14-19 cents/lb since the end of December.
Sources had expected a jump of 12-16 cents/lb based on the surge in RGP, as well as tightness in the acetone market.
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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