The October US contract price for acetone settled down 1.75 cents to 63.50 cents/lb ($1,400/mt), sources said Tuesday.
The settlement was in line with expectations of a 1 cent to 2 cents decline, sources said.
The lower settlement came because of lower spot prices, sources said. Spot acetone prices have been moving lower amid an increase in supply length, sources said. Shipments of acetone into the US in addition to the absence of usual consumers have contributed to excess market supply, sources said. Market participants expect longer supply-length to be short-lived as phenol supply outweighs phenol demand. Acetone is a byproduct of producing phenol, therefore, a slow phenol market means lower acetone production.
The prior contract price settlement in September was at 65.25 cents/lb, a fall of 1.25 cents from August, sources said.
