PODCAST: High propylene costs pressure US acetone, solvents markets amid strong demand

Tarun Raizada

16-Feb-2021

HOUSTON (ICIS)–Rising US propylene prices continue to pressure many markets – including acetone and a variety of solvents – because downstream demand is strong.

As high propylene prices pressure the acetone market, methyl methacrylate (MMA) suppliers are finding it hard to run at full operations and build inventory. The high price is also exerting pressure on margins because of the high cost of spot acetone.

US oxo-alcohols contract pricing moved up for January on higher feedstock propylene, persistently tight supply and strong demand from the downstream construction coatings and plasticizers markets as well as the automotive, medical equipment and packaging sectors.

Elsewhere, the US butyl acetate (butac) and acrylates markets have been constrained by strong home renovation demand amid feedstock pressure.

The third podcast interview in the propylene series discusses all the above and more with market experts Tarun Raizada and Larry Terry.

Check out the first and second podcasts in this propylene series.

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