US January contract ACN prices jump by 15% on feedstocks

28 January 2011 21:21  [Source: ICIS news]

HOUSTON (ICIS)--Surging feedstock costs for chemical-grade propylene (CGP) and ammonia fuelled a 15.4% jump in the US January domestic contract for acrylonitrile (ACN), as assessed on Friday by ICIS.

The formula-based contract price for ACN jumped to 97.09-105.11 cents/lb ($2,140-2,317/tonne, €1,563-1,692/tonne). The increase comes mostly from the surge of the January contract price for CGP, which went up by 11-15 cents/lb.

The New Orleans spot free on board (FOB) ammonia price also increased to $478-500/ton (€358-402/tonne) from $434-435/ton week-on-week.

A producer said the ICIS formula-based prices were slightly lower than what was in the market, but a buyer said the prices were in line with market conditions.

Supplies of ACN have been limited because of planned maintenance at facilities across the globe. Meanwhile, high cotton prices have caused demand to strengthen for acrylic fibre (AF).

Both factors have pushed ACN prices toward near-record levels.

In the US Gulf (USG) spot market, ACN prices jumped $100/tonne week on week on news that material remained tight, and producers were starting negotiations at $2,500/tonne.

Currently, USG spot ACN is assessed by ICIS at $2,300-2,400/tonne FOB.

Major US producers of ACN are Ascend Performance Materials, Cytec Industries and INEOS Nitriles.

($1 = €0.73)

To learn more about acrylonitrile go to ICIS chemical intelligence
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By: John Dietrich
713-525-2600



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