Japan’s Asahi Kasei cuts November ACN nomination by $300/tonne

21 October 2011 04:38  [Source: ICIS news]

SINGAPORE (ICIS)--Japan’s Asahi Kasei has lowered its November contract price nomination for acrylonitrile (ACN) by $300/tonne (€219/tonne) because of weak buying sentiment, a company source said on Friday.

Asahi Kasei's November Far East Contract Price (FECP) nomination on a CFR (cost & freight) Asia basis is $2,000/tonne.

The FECP for October was $2,300/tonne CFR Asia.

“Weak sentiment is the major factor for the downward price revision for the November FECP,” the source said.

Demand for ACN has weakened with the downstream acrylonitrile-butadiene-styrene (ABS) makers in China operating their plants at reduced rates of about 50%, while those in Taiwan, South Korea and Japan have cut their operating rates to around 65%, said industry sources.

Meanwhile, ACN supply remained ample, with deep-sea cargoes from the US Gulf competing with Asian suppliers struggling to find customers in a bearish market, traders said.

ACN spot prices have dropped by $300/tonne since mid-September to $1,750-1,800/tonne CFR  northeast (NE) Asia in the week ended 14 October, ICIS data showed.

($1 = €0.73)

For more information on ACN, visit ICIS chemical intelligence
For more on Asahi Kasei, visit ICIS company intelligence

By: Helen Yan
+65 6780 4359

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