First Europe Q2 ACN contracts rolled over

25 April 2008 13:41  [Source: ICIS news]

LONDON (ICIS news)--A major producer has settled a significant proportion of its second-quarter European acrylonitrile (ACN) contracts at a rollover from the first quarter despite higher feedstock costs, the seller confirmed on Friday.

The rollovers were confirmed by one major buyer, while the producer stressed that not all settlements were completed.

First-quarter ACN contracts were settled at €1,845-1,855/tonne ($1,181-1,187/tonne) FD (free delivered) NWE (northwest Europe).

The producer conceded that the global fibres market was struggling, although neither party was really happy with the settlement.

The producer said he hoped to recoup some margin in the third quarter, by which time there may be some relief on propylene and ammonia feedstocks.

Elsewhere, another major buyer reported offers from another producer at plus €20/tonne, which surprised the buyer as it thought the seller’s opening position would be nearer to the producer’s stated target of plus €30-40/tonne.

A major producer confirmed offering at plus €20-30/tonne, and continued to make the case with customers that an increase was justified on the grounds of higher feedstock costs; a desire to recoup margins lost in the first quarter and that the market was balanced or even tight.

The producer said it would accept an increase of plus €10-20/tonne over the first quarter.

($1 = €0.64)

For more on ACN visit ICIS chemical intelligence

By: Mike Nash
+44 20 8652 3214

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