Ineos Phenol will increase acetone prices by 5 cents/lb on October 1, the company said in a letter to customers seen by Platts Wednesday.
A reason for the increase was not disclosed in the letter, but sources said the announcement was in response to a recent surge in prices for feedstock refinery-grade propylene.
Since September 9, refinery-grade propylene prices have risen 7.75 cents/lb ($171/mt), according to Platts data.
Additional increases in acetone are likely due to the gain in propylene, sources said.
Acetone supply has been snug amid weak co-product phenol demand, which has resulted in lower production rates, sources said.
Spot acetone was last assessed Tuesday at $1,323/mt (60 cents/lb) FOB US Gulf Coast.
