25 January 2011 04:56 [Source: ICIS news]
By Helen Yan
Spot ACN prices were last assessed at $2,380-2,420/tonne CFR northeast (NE)
In May last year, prices were at $2,400-2,450/tonne CFR NE Asia and at $2,450-2,500/tonne CFR India, ICIS data showed.
“The customers may have no choice but to pay $2,500/tonne if they need to secure any cargo as supply is very tight,” said a trader.
AF makers decried the relentless spike in ACN prices, which were hitting their margins.
“If the ACN price was to continue to rise further, we may have to cut operating rates as our margins are being severely eroded,” an AF producer said.
“We cannot afford to pay higher than $2,400/tonne or we will have no margins,” he added.
However, ACN supply was expected to tighten further in the coming months.
“Deep-sea supply from the US Gulf and
In Asia, Korean producer, Taekwang Industrials, plans a three-week shutdown at its 250,000 tonne/year plant in
Meanwhile, the continued price uptrend in feedstock propylene was also driving up ACN prices, traders said.
In the US, January feedstock chemical grade propylene rose by 11-15 cents/lb to 70-74 cents/lb, while in Europe, January propylene contracts rose by €110/tonne to €1,070/tonne.
Asia propylene costs had increased by $60-80/tonne in the past month to close at $1,340-1,360/tonne CFR northeast (NE)
($1 = €0.73)
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