06 September 2013 09:56 [Source: ICB]
US-based ExxonMobil Chemical announced on 29 August a price increase nomination of 5 cents/lb ($110/tonne, €83/tonne) for US methyl ethyl ketone (MEK), effective 13 September.
The move was surprising to the market because MEK prices are at their lowest levels in two years, and there had been speculation that the global MEK market was 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 29 August, no spot deals had been heard. No production problems were reported. In its announcement, ExxonMobil cited increased costs of feedstocks as the reason for the move.
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