29 August 2013 17:24 [Source: ICIS news]
HOUSTON (ICIS)--ExxonMobil announced on Thursday a price increase nomination of 5 cents/lb ($110/tonne, €83/tonne) for ?xml:namespace>
The move was somewhat surprising to the market, as MEK prices are at their lowest levels in two years and there had been speculation that the global MEK market was somewhat oversupplied.
However, a distributor said that recent events in the petrochemicals industry – several announcements tied to higher feedstocks – likely warranted the MEK increase.
“Actually, it was a surprise that with everything else that’s going up [that] no one jumped on the MEK bandwagon,” the distributor said.
Even with the MEK announcement, MEK spot and contract prices are expected to roll over for August. As of Thursday, no spot deals had been heard. No production problems were reported.
In its announcement, ExxonMobil cited increased costs of feedstocks as the reason. Ethylene prices, however, have been fairly stable the last few months.
The last MEK price movement was in May, when contract prices fell from 81.5 cents/lb ($1,797/tonne) to 80 cents/lb ($1,764/tonne) and spot prices dropped from 77 cents/lb ($1,698/tonne) to 75 cents/lb ($1,653/tonne).
($1 = €0.75)
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