27 April 2012 12:33 [Source: ICIS news]
LONDON (ICIS)--European spot acrylonitrile (ACN) prices fell by $250/tonne this week, following the bearish trend in Asia, sources said on Friday.
A deal was confirmed for 2,000 tonnes between a European fibres producer and domestic seller at $2,040/tonne (€1,550/tonne) CIF (cost, insurance & freight) WE for May delivery, while another trader said it has not yet finalised May deals but is negotiating at around the same level.
The buyer involved in the $2,040/tonne deal added that it rejected a $2,060/tonne CIF offer from the US because of the one-month lead time, particularly as it expects values will fall below $2,000/tonne by June.
The seller said the settlement was below expectations, as it was aiming to get around $2,100/tonne CIF for May because European demand remains steady, if unspectacular. However, the European market is under pressure from cheap Asian material, which has dropped in value by $200-250/tonne this month.
Northeast Asian ACN spot prices fell by $100/tonne this week – to $2,100-2,150/tonne CFR (cost and freight) – as acrylic fibre and acrylonitrile-butadiene-styrene (ABS) producers retreated to the sidelines in anticipation of lower prices. Buying sentiment is increasingly bearish amid concerns over a slowing Chinese economy and an uncertain global market outlook.
The European ACN spot range is $2,000-2,050/tonne CIF WE.
($1 = €0.76)
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