APIC ’12: Asia ACN may extend falls on poor AF demand – trader

17 May 2012 06:56  [Source: ICIS news]

SINGAPORE (ICIS)--Acrylonitrile (ACN) prices in Asia may continue to fall in June because of poor demand from downstream acrylic fibre (AF) sector, a major regional trader said on Thursday.

Spot ACN prices were assessed at $1,900-2,000/tonne (€1,501-1,540/tonne) CFR (cost and freight) northeast (NE) Asia in the week ended 11 May, down $100/tonne from the previous week, according to ICIS.

"Fibre producers in China, who produce mainly for exports, are being hit hard by the eurozone after the uncertainty in Greece," the Japan-based trader said on the sidelines of the 34th Asia Petrochemical Industry Association Conference (APIC) in Kuala Lumpur.

The debt-saddled eurozone is one of China’s major export markets.

Meanwhile, ACN producers in Japan, like Asahi Kasei, are also hurting from the strong Japanese yen that constrain the growth of their exports, the regional trader said.

"The local producers may also be hit by the shortage of electricity and production may have to be cut later in the summer," he added.

"Temperatures are not so high now but later on we might see them rationing the electricity more often and this may affect some production," the trader said.

APIC runs from 16-17 May.

($1 = €0.73)

By: Nurluqman Suratman

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