European methyl isobutyl ketone (MIBK) prices have fallen by €100/tonne at the top end of the range, to €1,850-2,000/tonne FD NWE, because of weaker demand and falling upstream acetone costs.
Weaker demand is because of destocking ahead of traditional end-user outages in August. Declining macroeconomic conditions, particularly in southern Europe, have limited downstream construction demand, which is linked to GFDP.
Upstream, softer summer demand and an ease in availability has resulted in a €20/tonne decrease on the high end of the acetone spot range in Europe. Spot is now valued at €880-920/tonne FD NWE. Prices are on a downward trend as some traders said €900/tonne FD is no longer achievable. Sources indicate that offers at €850-870/tonne FD are being made instead, and even levels at €800/tonne FD are surfacing. September prices are expected to rebound as demand should increase, putting a strain on cargo availability.
In production news, Shell will shut its 45,000 tonne/year MIBK plant in Pernis, the Netherlands, for one month for planned maintenance beginning 20 August, a company source previously confirmed.
The outage is not expected to have an impact on the MIBK supply-and-demand balance in Europe because it will coincide with end-user outages.
In Asia, MIBK prices firmed by $10/tonne, to $1,840-1,860/tonne CFR China, because of higher feedstock acetone costs.
($1=€0.70)
This week on ICIS news ( www.icis.com ):
28-Jul-11 22:45 US July truck acetone prices fall by 8% on weaker demand
26-Jul-11 05:33 Japan’s Mitsui Chemicals on track to shut MIBK plant in October
25-Jul-11 09:02 Taiwan’s LCY Chem to restart Zhenjiang MIBK plant on 10 August
