02 August 2013 14:48 [Source: ICIS news]
LONDON (ICIS)--European acetone spot prices are moving up based on the August propylene contract price settlement and tight supply, sources said on Friday.
About its spot price, a major producer said: “€1,000/tonne ($1,316/tonne) is our price. It’s not a take-it-or-leave-it price, we are just saying the market is really tight and trying to have more of a discussion.”
Another producer said it was “definitely” increasing it prices, but that the magnitude would depend on the customers starting price.
“I will adjust some [accounts] more than others and in some cases I will increase with the whole propylene. For acetone I would say €870/tonne FD (free delivered) - around this level,” the producer said.
The third producer, who had been quoting in the low €800s/tonne FD in recent weeks, said its selling price was now €860-870/tonne.
In the resale market, sources confirm that all producers are attempting to increase their prices. While they accept that acetone prices look set to move up, demand was flat this week.
“Producers are trying to raise their prices and €810-820/tonne FCA (free carrier alongside) is where I see the market,” said an ARA (Amsterdam-Rotterdam-Antwerp) based distributor.
A second trader in Rotterdam said its demand was “really low” because of the holidays.
“Availability of acetone is bad, but there is no demand. If a person needs to buy they can pay a crazy price. €900/tonne is not a problem,” the trader said.
A third reseller based in Germany said: “Demand is not so huge - we are offering, but there is a big spread. There are low numbers and prices that are above €1000/tonne, but we are still offering acetone below €900/tonne."
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