US March truck acetone prices moving up on tight supply

11 March 2013 20:44  [Source: ICIS news]

HOUSTON (ICIS)--US March truck acetone prices are facing upward pressure from tight supply, sources said on Monday.

Buyers and sellers said pre-discount prices are moving up to the low-80s cents/lb, despite a lack of formal price increase nominations.

“It’s just the tightness of supply that’s keeping the market high,” a buyer said. “Demand is only so-so.”

February prices were assessed by ICIS at 79-83 cents/lb ($1,742-1,830/tonne, €1,341-1,409/tonne) DEL trucks (delivered via trucks) on a pre-discount basis.

Most sources agreed truck material is not available below 80 cents/lb, although some buyers said there is still product at that level.

“There are numbers below 80 cents/lb in the market,” a buyer said. “There hasn’t been any upward movement since February.”

Producers said they expect the material available below 80 cents/lb will run out soon as supply has been tight in the market for several months.

The supply tightness stems from low operating rates, as well as strong demand for acetone from the large-buyer segment for methyl methacrylate (MMA) and bisphenol A (BPA).

Major US acetone producers include Axiall, Haverhill Chemical, Honeywell, INEOS Phenol and Shell Chemical.

($1 = €0.77)

By: John Dietrich

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