Buyers see proposed 5-cent/lb US MEK hike as excessive

02 May 2014 21:08 Source:ICIS News

HOUSTON (ICIS)--US methyl ethyl ketone (MEK) price increases by Sasol and ExxonMobil do not have much of a chance in the market, more than one buyer said on Friday.

If increases are implemented, they likely will not be the full increases sought by both companies, sources said.

“Those [increases] really make no sense,” the source said Friday. “Some people have said that MEK is tightening, but, I’m not hearing that.”

ExxonMobil and Sasol made separate 5-cent/lb ($110/tonne) nominations for MEK. ExxonMobil’s nomination is for 2 May, and Sasol’s is for 4 May.

“Five cents seems really excessive,” the source said. “It’s not realistic. Maybe they’re hoping to toss out 5 and get 2 or 3.”

Another source indicated that there was nothing in the markets to justify the increases.

Major MEK producers are ExxonMobil, Dow Chemical, Sasol and Shell.

By Andrew Guy Jr