23 January 2009 11:08 [Source: ICIS news]
LONDON (ICIS news)--Some Europe acrylonitrile (ACN) contracts have been settled on a monthly basis for January at a price reduction of €730-750/tonne ($948-974/tonne) compared to fourth quarter 2008 levels, buyers and sellers confirmed on Friday.
One major producer confirmed it had settled more than 50% of its contracts in volume terms, while another said it still had the majority of contracts to settle. A buyer confirmed it had settled all its contracts at this price reduction.
The fourth quarter 2008 contract price of ACN was assessed at €1920-1930/tonne FD (free delivered) NWE (northwest ?xml:namespace>
Neither side reported much satisfaction with the agreed ACN deal. Producers had wanted more modest price cuts of minus €680-700/tonne, based on the fall in propylene prices.
Propylene values in Europe for January were agreed at €430/tonne ($566/tonne) FD (free delivered) NWE (northwest
Buyers meanwhile had initially nominated minus €800/tonne to reduce the margins being made by producers.
However, purchasers acknowledged that the eventual settlement figure was a realistic compromise between each sides’ opening stance.
Buyers said that they would, however, be lifting minimum volumes in January due to slow demand in downstream applications.
Looking forward to February, players anticipated a possible uptick in ACN prices based on higher propylene and ammonia costs.
($1 = €0.77)
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