05 August 2013 23:07 [Source: ICIS news]
HOUSTON (ICIS)--At least two US acetone producers have proposed August truck acetone price increases of 5 cents/lb ($110/tonne, €83/tonne), mostly on tightening supply, sources said on Monday.
The two initiatives have effective dates of 5 August and 15 August, respectively.
Additionally, one supplier to the solvent and distribution market has implemented 100% sales control for August and September. Sasol said in a letter to customers that the limits are necessary to ensure it can meet its contractual commitments.
Demand for acetone has heightened, even as operating rates for co-product phenol continue to hover in a range estimated at 65-70%.
However, one customer said it was not yet concerned about higher pricing in August.
“We received increase notifications from only two of our suppliers,” the buyer said. “So we are not feeling pressure for increased pricing at this time.”
The July truck acetone price range is 69-73 cents/lb, as assessed by ICIS, but recently has been heard slightly lower, especially at the top of the range.
July truck acetone prices recently settled flat, despite some supply-side efforts to move pricing up. The US July barge acetone contract recently settled at 64 cents/lb, up by 1 cent/lb from June.
Major US phenol-acetone producers include Axiall, Dow Chemical, Haverhill Chemical, Honeywell, INEOS Phenol, SABIC Innovative Plastics and Shell Chemical.
($1 = €0.75)
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