US truck acetone drops 15% on weak demand

25 February 2008 17:51  [Source: ICIS news]

HOUSTON (ICIS news)--Truck prices in the US acetone market dropped by 15% to 54-58 cents/lb ($1,190-$1,279/tonne or €797-856/tonne) due to weak downstream demand amid plentiful supply, sellers and buyers said on Monday.

Sellers began issuing discounts from 3-5 cents/lb last week, a distributor said. The price drop was a result of weak downstream demand amid plentiful supply, a distributor said.

As less acetone has made it through the export market, the US supply is becoming much more loose, a trader said.

Spot prices were heard on offer for 42-45 cents/lb free on board (FOB), US Gulf, a buyer said.

The weak US dollar, equal to around €0.67, has made netbacks on US acetone cargoes to Europe unattractive, one seller said. And anti-dumping duties into China have also hurt sellers.

Major US acetone sellers include Shell, Georgia Gulf, Dow Chemical, INEOS Phenol and Blue Island Phenol.

($1 = €0.67)

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Author: Heather McGuire Doyle
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