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Editor: Larry Terry, larry.terry@icis.com
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A major US methyl isobutyl ketone (MIBK) producer proposed a 5 cent/lb ($110/tonne) contract price hike effective 1 April during the week ended 5 March, while current March initiatives of 5-7 cents/lb had begun to settle at the low end of the range, some sources said.
However, some buyers said the March initiatives had yet to gain traction because many consumers were still assessing upstream volatility in the wake of unplanned cracker outages in recent weeks.
The newest initiative was prompted by escalating propylene costs stemming from constrained supply and growing demand for the feedstock, the producer said.
Among feedstocks, US refinery-grade propylene was heard bid on 5 March at 55.00 cents/lb after trading at 54.00-54.25 cents/lb earlier in the week, partly due to higher crude prices and the recent cracker outages, sources said.
Propylene contracts for March settled at an increase of 5 cents/lb, market sources said, pointing to tight supply as the main factor behind the 8% jump from February.
Feedstock isopropanol (IPA) had begun to settle for March at the low end of proposed hikes of 5-8 cents/lb, sources said. Meanwhile, a major producer proposed an increase of 5 cents/lb for 1 April, sources confirmed.
Truck acetone prices were steady in the lower 60 cent/lb range during the week.
NYMEX crude ended the week in positive territory, up by 2.3% versus the week-ago settlement. The gain was partly bolstered by a US Labor Department report showing fewer February job losses than expected, sources said.
In related news, Dow will take its 35,000 tonne/year MIBK plant in Institute, West Virginia, down for planned maintenance on 10 April. The work was expected to take about one month, a company source confirmed.
Sasol confirmed that its MIBK expansion in Sasolburg, South Africa, will come on stream this month. MIBK capacity at the site will be doubled to 60,000 tonnes/year.
NYMEX Front-Month Crude Oil Contract
| Date | 12 February | 19 February | 26 February | 5 March |
| (US$/bbl) | 74.13 | 79.81 | 79.66 | 81.50 |
This week on ICIS news ( www.icis.com ):
05-Mar-10 15:34 US chems, plastics lose jobs in Feb; unemployment holds at 9.7%
04-Mar-10 18:25 Chevron Phillips puts US olefins on force majeure – sources
04-Mar-10 17:36 US propylene extends uptrend in March; seen up 8% from Feb
03-Mar-10 19:31 US weekly propylene stocks drop by 8.6% - EIA
02-Feb-10 16:46 US pending home sales inch up in Dec, pull ahead of 2008
