17 February 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--February acrylonitrile (ACN) contracts settled up by €90/tonne because of soaring raw material costs, buyers and sellers confirmed on Friday.
Customers said this is a fair reflection of the market considering this month’s €90/tonne hike in upstream propylene – which translates to a €99/tonne increase in ACN production costs – was partially offset by a $70-75/tonne drop in ammonia values since the beginning of the year.
However, one ACN producer bemoaned the settlement as being far too low given strong demand from the downstream acrylic fibres and acrylonitrile-butadiene-styrene (ABS) sectors was making availability tight.
ACN consumers argued that despite strong buying interest the market remains balanced and they can secure all the contracted material they need. All European producers are running at 100%, they added.
February ACN contract prices are now pegged at €2,040-2,053/tonne FD (free delivered) NWE (northwest Europe).
($1 = €0.76)
For more on ACN visit ICIS chemical intelligence
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