Acetone prices stabilise, helped by falling phenol demand
Acetone spot prices in Europe have stabilised as phenol producers reduce operating rates because of a slowdown in phenol derivative demand. Because of this, there is less acetone being produced which in turn is preventing spot acetone prices from dropping further.
Spot business was concluded in a €680-730/tonne FD NWE price range, according to the majority of the acetone market participants, however, €670/tonne was heard on occasion.
The general consensus was that while prices were “lousy”, demand was at a reasonable level for November.
MMA and BPA demand
Off-take from the largest acetone consuming markets have eased.
Methyl methacrylate (MMA) demand is described as stabilising, but at a low level.
Bisphenol A (BPA) and its derivatives polycarbonate (PC) and epoxy resins demand have both felt the impact of a drop in global demand.
Pharmaceutical grade
Acetone into the pharmaceutical sector is steady and it is still possible to sell acetone at €800/tonne and above, according to one producer.
Russia
Russia's acetone bulk rouble (Rb) prices are down this week at Rb34,500-36,000/tonne ex-works. Some bulk contracts were said to have been negotiated at about Rb34,000/tonne. Prices of truck sales are also down, to Rb36,000-37,000/tonne. Russian domestic prices include 18% VAT.
UK
In the UK, prices continue to come under pressure and re-sellers said that a realistic price in the UK was now closer to £600/tonne FD, rather than the £700s/tonne seen only a month ago. One trader said its customers were very nervous about the economic situation.
Export
Product continues to move out of Europe to Asia, despite a weaker Asian market. The export price range is unchanged from last week.
Asia
Poor domestic demand in China and high stocks continue to weight on prices in Asia. Levels dropped again this week to $940-960/tonne China Main Port, down by $5-30/tonne.
Feedstocks
Propylene supply length, which has dominated the European market for several months, has started to dissipate and in some areas supply is even described as tight – at least for prompt availability. Cracker cuts, restart delays and recent exports have all contributed to bring the market more into balance. Spot sellers are less inclined to be too flexible with their offer levels, and as a result, firmer pricing is heard. However, reported trade is thin. The November contract settled at €1,013/tonne FD NWE, down by €55/tonne from October.
Feedstocks
Propylene supply length, which has dominated the European market for several months, has started to dissipate and in some areas is even described as tight – at least for prompt availability. Cracker cuts, restart delays and recent exports have all contributed to bring the market more into balance. Spot sellers are less inclined to be too flexible with their offer levels and as a result, firmer pricing is heard. However, reported trade is thin. The November contract settled at €1,013/tonne FD NWE, down by €55/tonne from October.
European benzene spot prices fell below $900/tonne CIF ARA this week to their lowest level since September 2010 on the back of weak demand from key downstream markets and wider macroeconomic uncertainty.
European phenol production
As mentioned above, European operating rates have been reduced by 70-80% because of falling demand for phenol derivatives. Acetone is a co-product of phenol.
($1=€0.74)
(€1=£0.85)
(€1=Rub 41.60)
This week on ICIS www.icis.com:
10/11/2011 20:11US September acetone exports up by 53% year on year
09/11/2011 10:20 Japan's MRC, Lucite to develop bio-based MMA production tech
08/11/2011 09:37China is not the saviour of the global economy - consultancy
