Europe May acrylonitrile contracts settle up €43-50/tonne

28 May 2010 23:59  [Source: ICIS news]

LONDON (ICIS news)--European acrylonitrile (ACN) contracts for May have settled up by €43-50/tonne ($53-62/tonne) from April due to a very tight market, buyers and producers confirmed on Friday.

May prices were assessed at €1,908-1,965/tonne FD (free delivered) NWE (northwest Europe).

Initial settlements were reported last week at increases of €43-45/tonne.

May contract negotiations were agreed quicker than expected, as April contracts only settled earlier this month, when prices increased by €90-120/tonne over the previous month.

Certain buyers believed a rollover in prices would have been a fair outcome for May contracts given the developments in raw material prices.

Propylene prices fell in the US and June contracts in Europe settled at a rollover.

Producers, however, continued to cite tight supply as a reason for increases, adding that the need to secure material in such a short market left buyers with little choice but to accept another price rise.

A major producer said it was not fully satisfied with the May settlements, as it had initially targeted a €70/tonne increase from April prices.

June contract price negotiations are expected to begin next week.

($1 = €0.81)

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By: Rita Menezes
+44 208 652 3214

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