23 June 2009 04:22 [Source: ICIS news]
By Helen Yan
SINGAPORE (ICIS news)--Asian acrylonitrile (ACN) producers will continue to target India and the Middle East as Chinese demand slumps due to an influx of deep-sea cargoes there, traders and producers said on Tuesday.
“The tanks are overflowing and we have enough ACN supply to last until the end of July, so we are not importing any cargo from the Asian producers,” a Chinese trader said.
Chinese traders had capitalised on the opening of the arbitrage window from the US Gulf to ?xml:namespace>
As a result, they had procured large quantities of lower-cost, deep-sea ACN material from the US Gulf. About 10,000 to 15,000 tonnes of deep-sea material from the US Gulf had been arriving in
The slump in Chinese demand had prompted the Japanese, Taiwanese and Korean ACN producers to target other markets such as
“Although demand in
“The Chinese market is not buying at the moment as they have too much supply but demand from
Asian ACN producers have been seeking prices above $1,200/tonne(€864/tonne) CFR (cost and freight) Asia but Chinese buying indications for imports had dipped below $1,100/tonne CFR, weighed down by the weak domestic ACN prices in China.
Domestic ACN prices in
On the other hand, trades into
“We expect demand from
($1 = €0.72/ $1 = CNY6.84)
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