The June US contract price for acetone declined 4 cents ($88.18/mt) to a settlement at 62.25 cents/lb ($1,372.36/mt), sources said late Tuesday.
Market participants expected a lower settlement because of persistently weak demand that resulted in lower spot prices.
After multiple producer and consumer turnarounds ended at the end of May, there were expectations for demand to increase, however, buying interest stayed at a minimum, sources said.
US acetone demand was improving this week and spot pricing had likely reached a floor because of higher propylene pricing and tight supply, sources said. From a week ago, spot pricing for refinery-grade propylene, a feedstock of acetone, has gained 4 cents/lb ($88.18/mt), last assessed Tuesday at 58 cents/lb ($1,278.67/mt). These fundamentals could also translate into a higher settlement for July, sources said.
US spot acetone was last assessed Tuesday at $1,246/mt FOB USG.
The May settlement was at 66.25 cents/lb, a 1 cent/lb decline compared with April, sources said.
The acetone contract typically settles retroactively.
