US MIBK settles flat for July on weaker feedstock values
US methyl isobutyl ketone (MIBK) settled flat for July, sources confirmed during the week ended 29 July.
Market uncertainty stemmed partly from a lone price-hike initiative of 3 cents/lb ($66/tonne, €46/tonne) for the month, but the consensus was that prices had remained broadly unchanged from June.
Contract values previously rose by 10 cents/lb in June on upstream pressure, and by a total of 13 cents/lb in April and May.
However, buyers asserted that MIBK demand was firm throughout July, and that prices had not moved during the period.
MIBK demand has stemmed largely from the tyre market buoyed by automobile manufacturing in China and in the US, sources said.
However, US propylene and acetone prices have weakened.
Feedstock
US refinery-grade propylene (RGP) spot prices slipped as polymer-grade propylene (PGP) numbers continued to rise. RGP traded at 66 cents/lb and 68 cents/lb for July delivery, although the former deal was understood to be for a small quantity of propylene and was not included in the assessed range.
The RGP bid/offer range at the end of the week was 68-71 cents/lb, with August offered at 65 cents/lb. PGP traded at 78 cents/lb and 79 cents/lb for August delivery, and at 78 cents/lb for September delivery.
Feedstock US isopropanol (IPA) contract prices were steady during the week after dropping sharply for July, but most sources said pricing would continue to weaken into August as producers seek to sell off more expensive inventory.
US July truck acetone prices dropped by 8% as demand softened and supply increased, sources said during the week. Truck acetone, which is typically sold into the distribution market for solvent use, fell to a range of 66-70 cents/lb.
Buyers said demand for acetone-based products was softening, mostly because of the continuing lag in US housing and building construction. Barge acetone pricing fell by 7% during the period.
US NYMEX crude futures for September finished the period down by just over 4% on the week despite a weaker dollar versus the Swiss franc. Trading also reacted to US economic data showing weak growth during the first half of the year. The paralysis in Washington over the US debt ceiling diminished sentiment as well.
($1 = €0.70)
NYMEX Front-Month Crude Oil Contract
| Date | 8 Jul | 15 Jul | 22 Jul | 29 Jul |
| (US$/bbl) | 96.20 | 97.24 | 99.87 | 95.70 |
This week on ICIS ( www.icis.com ):
28/07/2011 22:45 US July truck acetone prices fall by 8% on weaker demand
27/07/2011 21:13 US propylene stocks fall slightly from 2011 peak
26/07/2011 16:40 US July barge acetone contracts fully settle down by 7% from June
26/07/2011 05:33 Japan’s Mitsui Chemicals on track to shut MIBK plant in October
25/07/2011 18:05 Flint Hills to start up Texas olefins unit after weekend shutdown
