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Home > News > Valuable News > US August acetone barge contracts fall on lower costs

US August acetone barge contracts fall on lower costs

ICIS 2019-08-27

US-acetone


US August acetone barge contract prices fell on lower refinery-grade propylene (RGP) costs, although there was some margin recovery.


US-August-chart1


 

August barge contracts are assessed at 32.75 cents/lb ($722/tonne) DEL (delivered), down 1.25 cents/lb from July levels.


Barge contract prices tend to track current-month RGP costs, which is used to produce feedstock cumene.


However, the spread between the two chemicals in August narrowed as RGP costs fell more steeply than acetone contracts.


The August settlement partially reverses a widening of the spread in July as acetone contracts remained flat despite higher RGP costs.


The following graph shows the spread between acetone barge contract prices and RGP spot prices.


US-August-chart2


Acetone can be used in solvent applications and in the manufacture of chemicals for the coatings, plastics, construction and automotive industries.


Major US acetone producers are INEOS Phenol, Altivia, AdvanSix, Shell Chemicals, SABIC and Olin.

Disclaimer: ECHEMI reserves the right of final explanation and revision for all the information.

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