Barge Market
The US July barge acetone price settled lower by 7% during the week ended 29 July, tracking lower feedstock costs and stable demand.
Sources said that with spot prices for refinery-grade propylene (RGP) still low, acetone margins remain acceptable, allowing for some of the margins to be passed downstream.
Producers cautioned that RGP prices could see a sharp increase in August, which tamped down the level of the drop in July barge prices.
Demand for acetone from the US methyl methacrylate (MMA) market is stable, as MMA producers are already running full-out to meet their demands and are working towards increasing capacity.
Acetone supply is balanced but is starting to get long as production rates are high because of strong demand for co-product phenol, sources said.
Truck Market
US July truck acetone prices fell by 8% from June levels, as demand softened and supply increased.
Sources said that with the US construction and building market slumping, demand for acetone as a solvent and paint stripper is lacklustre.
Supply of acetone is good, with sources saying some phenol sellers are insisting customers also purchase acetone in order to keep their inventories from getting too high.
A producer said the recent fall in truck acetone might be related to at least one major seller having too much inventory and selling at below-market costs. Once this stops, the producer said, truck acetone prices should rebound slightly.
Overseas Markets
Asian acetone prices increased by $30-40/tonne (€21-28/tonne) as low inventories in China pushed buyers to purchase material, and feedstock costs increased.
In Europe, acetone prices are stable but on a downward trend because of softer buying interest.
Feedstocks
US spot prices for RGP moved higher by 2.5 cents/lb, although deals done were at higher prices for smaller parcels, and thus were deemed not representative of the market.
The US August benzene contract price reached a confirmed settlement at an increase of 44 cents/gal on stronger spot benzene prices and lower production rates. The increase is the first for the contract price since May 2011.
($1 = €0.70)
This week on ICIS ( www.icis.com ):
29/07/2011 17:57 US August benzene contract rises for first time since May
28/07/2011 21:45 US July truck acetone prices fall by 8% on weaker demand
28/07/2011 17:46 US pending home sales rise for second straight month in June
28/07/2011 15:41 INSIGHT: Default lies not in our stars but in ourselves
26/07/2011 15:40 US July barge acetone contracts fully settle down by 7% from June
