06 September 2013 16:35 [Source: ICIS news]
LONDON (ICIS)--The European September acetone methyl methacrylate (MMA) contract price has risen by €48/tonne from the previous month, on the back of an increase in the feedstock propylene contract price, sources confirmed on Friday.
The September acetone MMA contract price settled at €956/tonne ($1,258/tonne) FD (free delivered) NWE (northwest Europe).
“We agreed to follow the C3 [propylene] increase,” a producer said. “Personally, I do not think this reflects the real situation in the market, in my opinion [the acetone] MMA CP [contract price] should have increased more. However, if we had not reached an agreement today, negotiations would have been extended for another week, and this would not be good for the market.”
Consumers were against paying more than the feedstock hike, and one buyer added: “The propylene increase is not driven by the market, but by crude oil, naphtha and political circumstances in Syria and Egypt.”
Acetone supply is tight because of reduced phenol operating rates. For every tonne of phenol produced, 0.62 tonnes of acetone is made.
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($1 = €0.76)
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