13 April 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--European April acrylonitrile (ACN) contracts have settled up by €65-70/tonne because of feedstock cost hikes, buyers and sellers said on Friday.
Upstream propylene settled up by €50/tonne ($66/tonne) this month, to a record high of €1,245/tonne FD (free delivered) NWE (northwest Europe), while ammonia prices jumped by €80/tonne between 2 March and 6 April. Combined, this results in a €95/tonne hike in ACN production costs.
However, ACN buyers argued that sellers had not incorporated decreases in ammonia costs into the March contract – when ACN rose by €115/tonne – so they did not feel they should now have to pay to cover the current rise in ammonia costs.
ACN customers also said they were not prepared to pay the full raw material cost rise, as weakening demand from the downstream fibres and ABS sectors in Asia is having a knock-on effect in Europe.
The April ACN contract settled at €2,220-2,238/tonne FD NWE.
($1 = €0.76)
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