07 May 2010 17:49 [Source: ICIS news]
LONDON (ICIS news)--European April acrylonitrile (ACN) contracts settled up by €90-120/tonne ($114-152/tonne) from March, on the back of tight supply and increasing feedstock prices, buyers and sellers said on Friday.
April prices were assessed at €1,865-1,915/tonne FD (free delivered) NWE (northwest Europe).
April contract negotiations were prolonged as producers tried to push for higher prices on the back of an extremely tight market. Meanwhile, buyers showed strong resistance to price increases as these were well above feedstock rises of approximately €80/tonne.
A producer described the prolonged contract settlement process as “the first of its kind”.
One major producer settled its April contracts up by €120/tonne and a second producer settled contracts up by €90/tonne on average.
A large global ACN buyer expected May contract negotiations to be prolonged but said that producers would not manage to push through such high increases. May contracts would not settle much above raw material price rises, the buyer added.
One large producer has reportedly announced May nomination prices to its buyers. However, buyers said it was too soon to comment on outcomes for May contracts.
For more on ACN visit ICIS chemical intelligence
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