US acetone contract prices for June fell 1 cent from May's mark to settle at 40 cents/lb, a consumer source said Tuesday.
The settlement was in line with market expectations, which were in a range in the low 40s cents/lb.
Contract prices fell because of cheaper feedstock refinery-grade propylene pricing, sources said.
RGP was last assessed Monday at 24.50 cents/lb delivered and was talked around 25.50 cents/lb Tuesday, sources said.
US acetone supply was still snug, as it has been generally for 2017, sources said.
They added that with production running at lower rates because of weak phenol demand, market dynamics supported acetone supply remaining low. There was not an export market right now for acetone, sources said.
Spot acetone was assessed this week at $871-$893/mt (39.50-40.50 cents/lb) FOB USG Tuesday, with indications around that level.
