Updated to mid-August 2009
Asian market review by Liu Xin, ICIS pricing
Asian acetone spot prices were stable-to-firm from early-June till mid-August, driven by the spikes in feedstock benzene and propylene values. Despite producers attempts to hike prices further, market sources said they were sceptical if the upward momentum was sustainable given the languid downstream demand, ample inventories, and lacklustre domestic prices in the key China market.
Acetone buying activities in recent weeks might have been the work of speculative traders taking positions amid the price upturn, while actual downstream end-users were only procuring small volumes as and when they needed cargoes, they added.
Spot prices were assessed at $695-770/tonne CFR (cost and freight) China in mid-August. Buying sentiment was weak as the prevailing domestic prices pegged import equivalent for acetone in China at around $650/tonne CFR China, industry players said.
European market review by Julia Meehan, ICIS pricing
The European methyl methacrylate (MMA) acetone contract price in May settled at €560/tonne FD (free delivered) NWE (northwest Europe) and €460/tonne FD NWE on a gross and net basis respectively
In June, the contract price increased by €38/tonne to €598/tonne FD NWE, with the net price up €30/tonne to €490/tonne.
From July onwards, only one contract price was published at €554/tonne FD NWE, up €64/tonne. The €64/tonne increase was largely propylene driven.
In the spot market, acetone was valued at €460-510/tonne FD NWE. By the middle of August spot material was valued in a €610-650/tonne price range owing to an increase in demand, higher propylene costs and tight availability.
Ongoing production restriction at every European phenol facility because of a lack of phenol demand for export contributed to tightness in the acetone market.
Export prices also moved up from $650-690/tonne FOB (free on board) Rotterdam in mid-May to $840-870/tonne FOB Rotterdam by the middle of August. Unlike phenol, there were healthy export opportunities to Turkey.
US market review by Heather McGuire Doyle, ICIS pricing
MMA acetone barge contracts continued their upward surge in the US due to tight supply. June prices were 41.50 cents/lb, up 6 cents from May. July contracts settled at 42.75 cents/lb ($942/tonne), up 1.25 cents from June.
Meanwhile, the spread between solvent/distribution acetone and MMA acetone narrowed. In mid-August, the truck acetone price was 52 cents/lb before discounts. For several years, the spread between truck and barge acetone has been around 15-20 cents/lb.
With imports offered into the US Gulf at a far greater pace than in past years, some sellers have tried to maintain market share by offering prices at or below cost this year, a distributor said.
The US acetone supply remains snug due to weak demand for co-product phenol. Phenol/acetone producers have been running plants at 50-60% rates throughout 2009.
However, the global acetone balance is oversupplied in Europe and Asia, and imports have kept US supply balanced.
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Acetone
Uses and Outlook
The largest consumer of acetone is acetone cyanohydrin (ACH), which is the precursor to methyl methacrylate (MMA) and methacrylic acid. Nearly all MMA is polymerised to make homopolymers and copolymers with polymethyl methacrylate (PMMA) resins being the largest application. PMMA is used to make acrylic products such as windows, skylights, lighting fixtures, signs and automotive parts. Methacrylates are also used in latex surface coatings.
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Acetone
Process Technologies
Early processes for the manufacture of acetone were based on the thermal decomposition of calcium acetate or the carbohydrate fermentation of corn starch or molasses. The ready availability of propylene in the 1960s led to routes based on the dehydrogenation of isopropyl alcohol or cumene peroxidation.
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