Export demand for European acetone from across the Atlantic could spell good news for European producers, as the region struggles with oversupply and prices hover at their lowest in six months.
Europe is currently the lowest-priced region, with spot assessed at Eur650/mt on a delivered basis and at $669/mt FOB Rotterdam. This makes Europe an attractive re-supply option for other regions, in particular the US and Latin America.
"There are a lot of inquiries worldwide. Europe is the lowest region," a trader said.
Acetone in the US has remained at $914.50/mt DER US this week, close to its highest since spring last year as supply tightness and more expensive feedstocks have underpinned prices.
European traders said they have fixed several US-bound acetone parcels in the recent months and are continuing to monitor this arbitrage, especially since freight rates remain historically low -- around $30/mt.
The US usually supplies acetone to Latin America, but with current supply constraints, US export prices are high -- FOB USG remains at $777/mt for the seventh week in a row -- making it unattractive to buyers in Brazil and other countries.
"There will be more exports [from Europe] in November: at least 2,000-3,000 mt will go into Brazil," another source said.
