Price and market trends: US April barge acetone falls on ample supply, weaker RGP

16 May 2014 09:57 Source:ICIS Chemical Business

US barge acetone has settled lower for April by 1.25 cents/lb ($28/tonne), most market participants had confirmed by 6 May, citing downward pressure from elevated supply and softer feedstock values.

 
The decrease moved the contract price to 67.25 cents/lb, down from the March settlement of 68.5 cents/lb.

Because some phenol-acetone spring turnarounds prompted strongly ramped-up preparatory phenol production, an inability to store too much extra co-product acetone may have prompted heightened acetone trading activity and lower prices as incentives to buyers, sources said.

Acetone has also seen diminished demand from derivative methyl methacrylate (MMA), a market also in the midst of several spring maintenance outages.

Additionally, April refinery-grade propylene (RGP) softened to 60.25 cents/lb during April from more than 63 cents/lb in March.

By Larry Terry