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 ?xml:namespace>
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.
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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