06 August 2010 17:14 [Source: ICIS news]
LONDON (ICIS)--Initial expectations for August European acrylonitrile (ACN) contract settlements ranged from a €38/tonne ($50/tonne) decrease to a fall of €100/tonne, buyers and sellers reported on Friday.
Expectations for August prices varied greatly, as buyers believed settlements this month should reflect a longer market, while producers claimed that, although availability had improved, the market was not long and August prices would not drop more than the €38/tonne fall in August propylene.
Buyers also argued that producers’ margins over feedstock costs should begin to fall back to previous years’ averages now that availability was easing, following a large rise since February when the market was tight.
One buyer believed a €100/tonne drop on July prices would be a fair outcome for this month’s settlements.
A producer said the ACN market was in a period of rebalancing, following months where demand outstripped supply, but stocks at all levels remained empty and upcoming turnarounds would keep the market in a fragile situation. The producer warned that any slight production issue could take the market back to the tight situation witnessed earlier this year.
August contract negotiations were only expected to settle towards the end of the month due to the holiday period.
July European ACN prices were assessed at €1,913-1,965/tonne (free delivered) NWE (northwest ?xml:namespace>
($1 = €0.76)
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