27 July 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--European acrylonitrile (ACN) July contracts settled down by €170-190/tonne, buyers and sellers said on Friday.
Reductions of €170/tonne were based on a similar fall in the upstream propylene July contract price. Decreases greater than that were a result of weak demand and sharp falls in spot prices during June and early-July.
Nevertheless, with an initial August propylene contract concluded at an increase of €130/tonne, and rising ACN spot prices, August ACN contract prices are widely expected to increase, although exact targets have not yet been set.
ACN consumption is improving because tight supply in Asia and expectations of further ACN spot increases have caused an increase in buying interest. Nevertheless, demand fell sharply in June and early-July because of bearish macroeconomic conditions and the approach of end-user holiday outages.
Some buyers said they had concluded July contracts at a reduction of greater than €200/tonne, but this was not widely confirmed.
($1 = €0.81)
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