Spot acetone prices in northwestern Europe have surged 53% since February 1 to Eur1,150/mt FD ($1,550/mt) Tuesday as several plant outages across France, Germany and Spain reduced stocks and output, market participants said.
Since the start of the year, acetone prices have soared by 78%, Platts data show.
Prices began to increase sharply at the beginning of the month as major production facilities in France and Germany faced technical issues due to the cold snap in Europe.
"I'm only receiving 50% of my regular supply," one Germany-based distributor said Tuesday.
Ineos' 395,000 mt/year plant in Gladbeck, western Germany, was forced to cut its operating rates in the second week of February as frozen waterways hampered delivery of feedstock cumene, an informed source said. Production has already been restored to regular rates, the same source said Tuesday.
Output at Novapex's 115,000 mt/year plant in Roussillon, southern France, was also affected by freezing temperatures. The producer declared force majeure on February 13 citing "unexpected technical difficulties" caused by "severe weather conditions," according to a statement sent to customers.
The company will keep the force majeure in place until the supply situation stabilizes, a source said.
In addition, Cepsa's petrochemical site in Huelva, southern Spain, has ben shut down from February 21 until March 3 for a maintenance inspection. But Cepsa's two acetone units, with a combined capacity of 285,000 mt/year, will remain down for a month, a company source said.
The increase in European prices comes at a time when acetone availability in the US is also scarce, market sources said. Even though prices at the US Gulf coast point to a wide-open arbitrage between the two regions, traders were unaware of fixtures bound to European ports.
US Gulf acetone closed Tuesday at $1,389/mt, Platts data show.
"March and April will be critical months," a European source said.
Ineos' Gladbeck plant is scheduled to go into a four-week turnaround period in mid-April.
