The May US contract price for acetone settled 1 cent ($22.05/mt) lower at 66.25 cents/lb ($1,460.55/mt), sources said Tuesday.
There were expectations amongst market participants for the settlement to decline despite snug supply, because of quiet demand, sources said.
Mutiple producer and consumer turnarounds are ongoing, but are anticipated by sources to come to an end sometime during the end of May or the beginning of June. Market impacts from these turnarounds have been minimal, sources said.
Phenol, a co-product of acetone, has tightened in supply as a result of these turnarounds.
Spot acetone prices have likely reached a floor and could see upward movement in June as demand comes back into the market, sources said.
US spot acetone was last assessed May 20 at $1,301/mt FOB USG. Sources pegged the market Tuesday in the upper 50 cents-60 cents/lb range.
The April settlement was at 67.25 cents/lb, a 1.25 cents/lb decline compared with March, sources said.
The acetone contract typically settles retroactively.
