25 October 2013 16:06 [Source: ICIS news]
LONDON (ICIS)--European spot acetone prices remain under pressure as demand is low in the solvents sector and there appears to be no shortage of spot material available, sources said on Friday.
“We are seeing acetone at €960-970/tonne ($1,333-1,347/tonne),” said one producer.
“I can confirm what everybody says. There is pressure on prices. Everything is weak,” said a second producer.
In the trade and distribution markets, spot acetone was quoted in the low €900s/tonne on a free delivered (FD) northwest Europe (NWE) basis.
“Demand is weak and getting slower. The market is really weak,” said a trader.
The trader valued spot acetone at €910-930/tonne FD NWE.
Not all price assessments for spot acetone this week were quite so low, and some sellers did say volumes were moving.
An ARA (Amsterdam-Rotterdam-Antwerp) based distributor said, “The acetone market is stable. There are some people who will lower their price levels, it’s the best they can do, but sellers expect prices to rise again. It’s bit uncertain.
“We can buy at €900/tonne FCA [free carrier alongside]. Price levels and demand are healthy, but not booming,” it added.
The supply of acetone has been tight in Europe because of ongoing cuts in primary product phenol, but in the spot market it is believed that some traders and distributors have been sitting in high stocks which they are now keen to sell ahead of possible declines in feedstock prices moving into November.
In relation to it position in the acetone market, a major producer said: "It’s the same story - it’s very quiet and there really is nothing new [to say]. We [are] hearing acetone is getting more competitive, [but] we are not
“We are still shipping the same volumes. We are tight here and in the US," it added.
($1 = €0.72)
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