HOUSTON (ICIS)--US December barge acetone contracts reached an initial settlement up 1.5% from November, sources confirmed on Tuesday.
The 0.75 cent/lb ($17/tonne) increase, if fully accepted, would put December contracts at 49.75 cents/lb on a DEL (delivered) via barge basis.
Market sources had expected a small move, given largely steady upstream refinery-grade propylene (RGP) prices.
However, demand has been stronger than expected in December, and import acetone prices from Asia have also started to increase.
The US barge acetone contract is typically settled between two large producers – INEOS Phenol and Shell Chemical – and the three largest buyers – Dow Chemical, Evonik and Lucite.