02 May 2013 17:50 [Source: ICIS news]
LONDON (ICIS)--The European May acetone methyl methacrylate (MMA) contract price has moved down by €60/tonne ($79/tonne) from the previous month on the back of a drop in the value of feedstock propylene, sources confirmed on Thursday.
The propylene contract price fell by €80/tonne, while the acetone MMA May contract price settled at €860/tonne FD (free delivered) NWE (northwest Europe).
A major consumer said it had been pushing for “the full reflection of the propylene reduction”, but current turnarounds and the force majeure at DSM prevented this from happening.
A second major buyer was disappointed to see a settlement down by €60/tonne, since it had pushing for more.
“€60 is a poor reduction given the circumstances. For many months we’ve seen them [the producers] take more than the propylene and it [the contract price] should move the other way. Now we will be looking for more in June.”
“This number [€860] puts acetone at its highest ration in a very long time. It makes the ACH (acetone cyanohydrins) MMA manufacture route more uncompetitive,” the major buyer added.
On the selling side a major producer said acetone in Europe was priced “way below what it should be”.
“A lower price when you’re a buyer is better than a higher price and it’s still way below what it should be,” the producer added.
Meanwhile the second quarter MMA contract price settled at an increase of €90-100/tonne, largely on margin recovery.
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