Europe December acetone MMA contract price up €16/tonne

05 December 2013 13:55 Source:ICIS News

LONDON (ICIS)--The European December acetone methyl methacrylate (MMA) contract price has moved up by €16/tonne from the previous month, following an increase in the value of major feedstock propylene, sources said on Thursday.

The December acetone MMA contract price settled at €911/tonne ($1,231/tonne) FD (free delivered) NWE (northwest Europe).

In relation to the settlement, an acetone producer said: “December – we have settled plus €20/tonne on the gross and €16/tonne on the net.

“We knew it would be difficult to increase with the same number as propylene. Acetone demand is low on the solvents side – also on the BPA (bisphenol A) side – also to do with phenol.”

On the buying side, a major consumer confirmed that its contract price rose by €16/tonne.

Regarding the acetone market, the buyer said “It looks like European demand is pretty flat or low. My feeling is that phenol and acetone are bad in terms of utilisation – based on demand.”

Acetone spot prices have come under pressure in recent weeks because of falling demand. Although demand for acetone into the solvents market has clearly tailed off, there has been a reluctance on the part of producers to reduce their offers since they say it will not generate new demand.

One producer said: “There is no point and we will not drop our prices. It simply won’t make our customers buy any more than they already need to.”

A second producer echoed this, saying it was staying “ridged” on its offers.

“We are staying ridged on our offers. Acetone for December will be around €850/tonne. You can’t generate new demand,” the producer said.

($1 = €0.74)

By Julia Meehan