02 December 2011 23:36 [Source: ICIS news]
HOUSTON (ICIS)--US acrylonitrile (ACN) November contract prices were assessed down on Friday by 5.97-7.83 cents/lb ($132-173/tonne, €98-128/tonne) from the October contract prices because of cheaper feedstock propylene.
Spot prices were unchanged for the week that ended on 2 December.
Formula-based contract prices for November are 95.72-99.75 cents/lb for domestic delivery and 77-45-81.65 cents/lb for export FOB (free on board). Spot prices are at $1,665-1,750/tonne.
Many US acrylonitrile producers are cutting back on production, and that has caused prices for material needed on an urgent basis to increase. But overall, spot prices are holding stable.
The prices for the material needed on an urgent basis are not typical for the market and therefore, are not reflected in the assessed spot prices.
Overall, producers are seeing sluggish demand, with hints that orders may begin to increase in January.
Although many producers have reduced production rates, buyers are not having issues with acquiring the material they need.
Buyers are also saying that prices are soft and will probably get softer, as propylene prices were down in November and are expected to fall again this month.
One buyer said propylene is forecast to rollover for the next several months, which could stabilise ACN prices.
Another market source expects prices to increase in the first quarter, after propylene prices regain strength.
One producer said they are not willing to go below their asking price for material and will hold the material if needed.
US producers of ACN include Ascend Performance Materials, Cornerstone Chemical and INEOS.
($1 = €0.74)
For more on ACN visit ICIS chemical intelligence
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