Europe April acetone contract likely to rise on higher feedstock

28 March 2014 14:55 Source:ICIS News

LONDON (ICIS)--European acetone producers and consumers on Friday pointed to a likely increase in the April acetone methyl methacrylate (MMA) contract, following a rise in key feedstock propylene.

The contract is expected to settle in the next few days.

The April propylene contract was fully confirmed on Friday at €1,140/tonne FD (free delivered) northwest Europe (NWE), up by €10/tonne from March, after three months of stable pricing.

“The [acetone] MMA contract will follow propylene… Everyone will agree to follow propylene,” said one producer.

Acetone buyers were disappointed by the rise in propylene, especially given the fall in co-product ethylene. However they were happy that propylene and acetone had been relatively stable this year.

“It’s been relatively benign,” said a buyer.

The European March acetone MMA contract price was agreed at €923/tonne FD NWE, unchanged from both February and January contract prices.

By Rhian O'Connor