MIBK likely steady to slightly weaker for August
US methyl isobutyl ketone (MIBK) contract values were heard mostly flat during the week ended 5 August but likely to drift downward in August for most customers.
Though demand was steady and balanced with supply, sources said, a large buyer said his price had dropped by 3 cents/lb ($66/tonne, €47/tonne) for August, after the market settled broadly at rollovers for July.
Posted values, however, were unchanged pending market consensus.
No production problems surfaced during the week.
Contract values had risen by 10 cents/lb in June on upstream pressure, and by a total of 13 cents/lb in April and May.
In downstream markets, the residential construction industry continues to be sluggish, with sales of new single-family homes falling by 1% in June from May, according to the US commerce department.
However, US pending home sales rose by 2.4% in June from May, the National Association of Realtors (NAR) said recently. May’s index reading marked an upturn from April when pending home sales had plummeted 11.6%.
Feedstock
US refinery-grade propylene (RGP) spot prices perked up earlier in the week, but the slump in energy prices is weighing on the market.
RGP for August initially traded at 69 cents/lb, before jumping to 70 cents/lb and then back down to 68 cents/lb. The latest deal was flat, with material transacted during the week.
August contract propylene was yet to settle. Producers originally sought a 3 cent/lb increase, but buyers were initially willing to agree only to a 2 cent/lb hike. That was before the latest drop in crude oil prices, which is now fuelling buyers’ resistance against the 2 cent/lb increase.
Polymer-grade propylene (PGP) for August traded at 78.75 cents/lb, compared with deals done at 78–79 cents/lb in the previous week.
Feedstock US isopropanol (IPA) contract prices were steady in the period, but buyers continued to pressure producers and distributors for reductions for August.
US truck acetone prices were stable during the week, with the biggest news being the entrance of Honeywell into the market after it took over the former Sunoco plant at Frankford, Pennsylvania. Prices were last in a range of 66–70 cents/lb.
US NYMEX crude futures for September finished the week down by more than 9% on the week, but during the trading day experienced a wide high/low range, bouncing off intra-day lows in response to a late upside correction in the stock market on bargain hunting and on a tumbling dollar.
Stagnant global economic growth has been driving crude markets down, but data showing non-farm payrolls rising above expectations helped stem the decline.
($1 = €0.71)
NYMEX Front-Month Crude Oil Contract
| Date | 15 Jul | 22 Jul | 29 Jul | 5 Aug |
| (US$/bbl) | 97.24 | 99.87 | 95.70 | 86.88 |
This week on ICIS ( www.icis.com ):
05/08/2011 18:46 US petchem market fears likelihood of another recession
03/08/2011 19:50 US propylene stocks drop 8%; refinery rates rise
03/08/2011 17:23 INSIGHT: Big producers confident as sector holds on to upstream margins
03/08/2011 15:15 US Eastman halts production at Texas cracker for valve repair
03/08/2011 10:37 IPEX retreats for second month
