26 August 2011 23:59 [Source: ICIS news]
LONDON (ICIS)--European August acrylonitrile (ACN) contract prices have declined by €45-50/tonne on the back of weakened upstream propylene numbers and lacklustre demand, buyers and sellers said on Friday.
This represented a compromise on both sides, as producers were looking to reduce numbers in line or just slightly more than the €15/tonne upstream propylene decrease.
On the other hand, customers hoped to achieve up to three-digit decreases when negotiations began, citing a long market amid weak demand.
Downstream acrylic fibres producers are well covered for August and several acrylonitrile-butadiene-styrene (ABS) players shut down for holidays throughout the month.
ACN buyers added that manufacturers hiked prices excessively earlier in the year when availability was tight amid planned and unplanned plant shutdowns, and so needed to claw back some margin.
Spot prices have already tumbled $750-800/tonne since their $2,850-3,000/tonne CIF (cost, insurance, freight) WE (western Europe) peak in May, to $2,100-2,200/tonne, on the back of the weak market.
Contract prices for August now stand at €2,140-2,168/tonne FD NWE, according to ICIS.
($1 = €0.70)
For more on ACN visit ICIS chemical intelligence
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