LONDON (ICIS)--The European April acetone methyl methacrylate (MMA) contract price has increased by €8/tonne from March, the first rise the market has seen this year following a €10/tonne increase in the value of key feedstock propylene, the buyer and seller confirmed on Thursday.
The April acetone MMA contract price moved up to €931/tonne FD (free delivered) NWE (northwest Europe), following three months of stable pricing.
“It has been agreed,” the producer said. “[acetone] MMA gross is up €10/tonne following C3. Net is up €8/tonne at €931/tonne.”
While the settlement was largely in line with expectations, the producer said there had been some that thought that propylene would settle higher.
“Acetone demand is stable on the low side and supply is balanced to tight, so it reflects the market well,” it added.
The new contract price was confirmed by the buyer.
Acetone spot prices rose in early February to €1,000/tonne FD NWE, but have since dropped off and were €930-970/tonne FD NWE last week, as the usual seasonal solvents demand has not materialised.
Supply is said to have improved with operating rates up, thanks to firmer demand for co-product phenol, and earlier logistics problems solved.
Spot prices this week are slightly lower, with some traders quoting prices at €910/tonne FD NWE.
Additional reporting by Rhian O’Connor
Follow Helena Strathearn on Twitter