07 March 2014 14:56 [Source: ICIS news]
LONDON (ICIS)--European acetone prices continue to stagnate, with no seasonal uptick in demand, sources said on Friday.?xml:namespace>
“There is no increase. I was expecting higher prices but customers are still rejecting [price increases],” said one producer.
The price stability comes against a backdrop of more limited supply, with logistics and production difficulties keeping availability tight. However demand is very weak, which many market participants consider surprising given the normal season patterns.
“Demand for acetone in the solvents sector is poor, very poor for the normal situation we expect in March. Normally this is the peak for the solvent sector”, said the producer.
“The price is too high, solvents are very price elastic market. Over €900 [/tonne FD] they are edgy”, said one acetone buyer.
Many market participants have given up hope of a significant upward movement from Friday’s prices.
“We hope to maintain this level through end of month without reductions”, said a second producer.
“If it’s not rising next week, it’s not going to rise”, said the buyer.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections