Europe ACN October contract rollover targeted depsite propylene drop

02 October 2009 16:28  [Source: ICIS news]

LONDON (ICIS news)--Buyer and seller opinions in Europe on the likely direction of October acrylonitrile (ACN) contract prices were already diverging following the news that October propylene contracts had settled down by €28/tonne ($41/tonne), sources said on Friday.

Producers’ initial thoughts were to push for a rollover or possibly a slight decrease from September, in view of the continued tight supply in the market and the rapid rise in ammonia prices.

The September ACN contract price was assessed at €1,490-1,510/tonne FD (free delivered) NWE (northwest Europe) according to global chemical market intelligence service ICIS pricing.

Sellers added that a rollover would send a message to buyers that the market was entering a much-needed period of price stability.

Buyers on the other hand wanted a reduction in October ACN prices to fully reflect the drop in propylene.

All sources welcomed the relief in propylene prices which were also being witnessed in the US and Asia. However producers were extremely reluctant to pass on the full drop in propylene as previous monthly ACN contracts had not reflected the generally tight market situation as well as movements in propylene.

“Buyers who expect to receive a reduction fully reflecting the drop in propylene are going to be disappointed,” concluded one producer.

$1 = €0.69

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By: Mike Nash
+44 20 8652 3214



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