US January barge acetone reaches initial settlement up 25%

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)

By: John Dietrich

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly