02 July 2013 18:06 [Source: ICIS news]
HOUSTON (ICIS)--The US June barge acetone contract has fully settled at an increase of nearly 8% over May, sources confirmed on Tuesday.
The hike takes the barge price to 63 cents/lb ($1,389/tonne, €1,069/tonne), as assessed by ICIS. The June settlement raised the price by 4.5 cents/lb from May.
Previously, the barge price for May settled flat from April at 58.5 cents/lb, stabilising pricing after two prior months of declines on then-weaker feedstock and delayed seasonal coatings demand.
However, protracted June negotiations stemmed largely from volatile feedstock refinery-grade propylene (RGP) values.
“I think the biggest thing was that RGP continued to ramp up for most of June,” a market participant said. Most players expected a later-than-usual barge settlement for June.
June truck acetone prices rose by an average of 5 cents/lb on similar fundamentals. July truck-price nominations of 2-5 cents/lb have already surfaced.
The US barge acetone contract is negotiated between three large producers – Georgia Gulf, INEOS Phenol and Shell – and the three largest buyers – Dow Chemical, Evonik and Lucite.
($1 = €0.77)
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