Japan’s Asahi Kasei keeps $2,000/tonne ACN offer for Dec contract

28 November 2011 08:49  [Source: ICIS news]

SINGAPORE (ICIS)--Japan’s Asahi Kasei has rolled over its $2,000/tonne (€1,500/tonne) nomination for December acrylonitrile (ACN) contract as the market has stabilised, a company source said on Monday.

The company’s December Far East Contract Price (FECP) nomination is on a cost and freight (CFR) Asia basis.

The downstream acrylonitrile-butadiene-styrene (ABS) producers are increasing their operating rates to 70-80% from 50-60% previously, thus lifting demand for ACN, traders said.

“Market sentiment has turned more positive. Demand is picking up and we have been getting more enquiries from customers in China,” a Japanese trader said.

Production cutbacks by several Asian ACN producers in China, Japan, South Korea and Taiwan have also restricted supply and helped support the price rebound, traders said.

ACN spot prices were assessed at $1,700-1,750/tonne CFR (cost and freight) NE Asia in the week ended 25 November, after bottoming out at $1,550-1,650/tonne CFR NE Asia in the week ending 4 November, according to ICIS.

ACN spot prices have been falling steadily since late April, when prices were at $2,750-2,850/tonne CFR NE Asia, ICIS data showed.

($1 = €0.75)

For more information on acrylonitrile, visit ICIS chemical intelligence

By: Helen Yan
+65 6780 4359

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