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An Analysis by Garrett Velarde


The MMA settlement for December 2017 was unanimously decided at $0.4975 per pound. This is an increase of $0.0075 per pound from November 2017.

Turning to feedstock, refinery grade propylene is hanging in there. Last trades were up ever so slightly and bids are reaching for the stars. Propane dehydrogenation (PDH) units continue to struggle to get on spec polymer grade propylene (PGP). These struggles have led PGP beyond a half
dollar. It will be interesting watching propylene pricing moving forward as ethane remains the lowest cost petrochemical feedstock. HINT: less propylene.

Domestic acetone supply appears fine right now. Imports, for the time being, seem to have covered the anticipated lost production in the Gulf from a producer announcing a shutdown of a unit. Imports from January to October 2017 have outpaced the same timeframe in 2016 by 60 million pounds. Roughly 14 million more pounds have gone out the USA door in the first 10 months of 2017 versus

The domestic truck and rail market saw some softening towards the end of the year with sellers trying to clear inventory but no real buyers out there. Classic case of which seller blinks first. Do you know how you know who had a better year between buyers and sellers of acetone? Whoever puts their automated reply email up first in December.

We predicted a slight movement up in our last report. We still got coal in our stockings though! For January, we anticipate minimal movement in the settlement. Spot pricing could climb up though with the anticipated shutdown of the Gulf phenol/acetone producer.




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