Europe January ACN contracts roll over as costs steady

20 January 2012 23:59  [Source: ICIS news]

LONDON (ICIS)--European January acrylonitrile (ACN) contracts settled at rollovers from December amid relatively stable feedstock costs, buyers and sellers said on Friday.

The €20/tonne ($26/tonne) increase in the upstream European January propylene contract was more than offset by the $90-110/tonne fall in ammonia costs since the beginning of December.

However, producers were able to keep values stable because of strong demand from all downstream sectors, with the acrylic fibres segment running flat out.

Fibre manufacturers said that while demand has shown definite improvement over the fourth quarter of 2011, there remains uncertainty over whether this is because of structural growth or simply a case of replenishing depleted inventories.

Other downstream sectors such as acrylonitrile-butadiene-styrene (ABS) and rubber applications are also pulling a lot of ACN material, but again many players put this largely down to restocking.

Despite the increased activity, availability remains ample, with ACN producers running flat out.

January contract prices are pegged at €1,950-1,963/tonne FD (free delivered) NWE (northwest Europe).

($1 = €0.77)

For more on ACN visit ICIS chemical intelligence
By: Amandeep Parmar
+44 208 652 3214

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