US April barge acetone initially settles down by 7.5 cents/lb

Larry Terry

19-Apr-2013

US April barge acetone initially settles down by 7.5 cents/lbHOUSTON (ICIS)–The US April barge acetone contract initially settled down by 7.5 cents/lb ($165/tonne €127/tonne) from March, sources confirmed on Friday.

If the market price fully settles at 58.5 cents/lb DEL (delivered), the decline will reflect an 11% drop from March, which saw the barge price at 66 cents/lb.

Though some sources expected settlements to surface later in the month, the market has been active, a seller said.

Tight acetone supply has tempered downward price pressure from feedstock refinery-grade propylene (RGP), which has fallen by 29% since early March.

The acetone supply crunch is not likely to ease anytime soon.

“Acetone is very tight,” the producer said. “And I don’t see any change in domestic phenol demand in April and May.”

Some have predicted a higher benzene contract price for May, which might further discourage phenol production.

April benzene fell by 33 cents/gal to take the monthly contract price to $4.36/gal.

The US barge acetone contract is negotiated between three large producers – Georgia Gulf, INEOS Phenol and Shell – and the three largest buyers – Dow Chemical, Evonik and Lucite.

($1 = €0.77)

READ MORE

Global News + ICIS Chemical Business (ICB)

See the full picture, with unlimited access to ICIS chemicals news across all markets and regions, plus ICB, the industry-leading magazine for the chemicals industry.

Contact us

Now, more than ever, dynamic insights are key to navigating complex, volatile commodity markets. Access to expert insights on the latest industry developments and tracking market changes are vital in making sustainable business decisions.

Want to learn about how we can work together to bring you actionable insight and support your business decisions?

Need Help?

Need Help?