Price and market trends: Europe acetone market hit by aggressive selling

10 May 2013 09:38  [Source: ICB]

European acetone spot prices have fallen again the week ended 3 May because of some aggressive selling, largely in Germany, sources said.

A trader said: "There is a wide spread from the lowest to the highest [price]. It's surprising, but it's reflecting to a certain extent the flat demand," said a trader based in Germany.

EXCESS MATERIAL

"I don't want to describe €950/tonne ($1,234/tonne) as a typical price level because I can still see some trucks sold for more than €1,000/tonne. I have a good explanation for the downward trend - there is one producer who had excess material," the trader added.

EU AcetoneOther resellers in Germany also quoted lower numbers the week ended 3 May. "We are hearing mixed numbers. Customers are say €950/tonne is okay, but I have heard lower numbers but we still have problems to go down like this because of the INEOS shutdown," said a second trader source. "Acetone is not so available right now and demand is so bad it's just quiet. If we receive orders it's a truck here and there. Sentiment is really depressed - the reason not so clear," it added.

Prices in the Amsterdam-Rotterdam-Antwerp (ARA) region were not as low as they were in Germany, although sources sounded just as downbeat about the demand from the solvents sector.

'LOUSY' DEMAND

"I see a wide spread," said a reseller. "I bought from my supplier at €930/tonne FCA (free carrier alongside) last week and now they offer me a stay-away price of €1,000/tonne. But I lost an order at €985/tonne." The seller described its demand as being "lousy".

Another ARA-based trader quoted €1,000-1,020/tonne FD (free delivered) NWE (northwest Europe) as it selling price, but said that it had sold very little.


By: Julia Meehan
+44 20 8652 3214



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