US February barge acetone fully settles up 40%

HOUSTON (ICIS)–US February barge acetone contracts reached a full settlement up 40% from January, sources confirmed on Thursday.

The 14 cent/lb ($309/tonne) increase puts contracts at 49 cents/lb on a DEL barge (delivered via barge) basis.

This is the highest the contract settlement has been since reaching 53 cents/lb in December 2014.

Sources said the increase was mostly the result of higher feedstock refinery-grade propylene (RGP) pricing and tight supply.

RGP prices rose around 15 cents/lb during the month, sources said.

Acetone supply remained tight as one producer was in turnaround for most of the month and two other producers have planned turnarounds in March and April.

Additionally, imports of acetone from Asia were minimal because of higher prices overseas.

The US barge acetone contract is settled between two large buyers – INEOS Phenol and Shell Chemical – and the three largest buyers – Dow Chemical, Evonik and Lucite.