05 November 2010 16:45 [Source: ICIS news]
HOUSTON (ICIS)--Acrylonitrile (ACN) prices in the US Gulf rose to $2,000-2,030/tonne (€1,400-1,421/tonne) as supply remained tight and demand from the acrylic fibre (AF) segment stayed strong, market sources said on Friday.
The increase was $50/tonne on the low end and $30/tonne on the high end.
Deals were not being heard for less than $2,000/tonne for the rest of 2010, market sources said.
ACN supply has been tight since the end of September as 12% of global capacity has been in turnaround. A European producer said ACN was particularly tight in the US Gulf, as no supply was available for Europe.
The increase in demand has come mostly from the AF segment, several market participants said. However, as ACN prices rise, AF demand could be stressed out, leading to polyester demand rising and putting a cap on ACN prices.
Acrylonitrile-butadiene-styrene (ABS) demand has been steady, sources said. However, with increased automobile sales in the US, ABS demand could rise, leading to more demand for ACN.
Another factor given for higher ACN prices was the weaker dollar.
Major ACN producers in the US include INEOS, Cytec Industries and Ascend Performance Materials.
($1 = €0.70)
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