US acetone contracts for March settled 2.5 cents/lb lower from February at 42.50 cents/lb, or $937/mt, sources said Tuesday.
Market participants expected a cheaper settlement because of downward movement in spot pricing in reaction to more supply availability amid import arrivals from other regions and slow demand.
Acetone contracts would likely see another dip in April pricing, a source said.
Co-product phenol was tight after a producer reduced capacity by shutting down a line and would likely remain that way through April, sources said.
In feedstocks, US March propylene contract prices were settled at a 6 cents/lb decrease to 47 cents/lb for polymer-grade product and 45.5 cents/lb for chemical-grade product, sources said. Spot RGP values were last assessed Monday at 28.25 cents/lb.
Spot pricing was in the mid-30s cents/lb FOB USG range for export, while domestic pricing was in the upper-30s cents/lb range, sources said.
