Japan’s Asahi Kasei raises August ACN nomination by $100/tonne

02 August 2012 03:47  [Source: ICIS news]

SINGAPORE (ICIS)--Japan’s Asahi Kasei has increased its August acrylonitrile (ACN) contract nomination by $100/tonne (€82/tonne) from July levels, a company source said on Thursday.

It nominated $2,000/tonne CFR (cost & freight) Asia as its Far East Contract Price (FECP) for August, compared with $1,900/tonne CFR Asia for July.

Cost-push factors and tight supply are the reasons cited by Asahi Kasei for the FECP increase.

“Our margins are in deficit because of high raw material costs, so we have no choice but to increase the August FECP,” the company source said.

Feedstock propylene prices have increased by about $70/tonne since 15 June to $1,340/tonne CFR northeast (NE) Asia in the week ended 27 July, ICIS data showed.

Prices of ammonia – another feedstock for ACN production – also increased by about $50/tonne in the past month to $700/tonne CFR Taiwan in the week ended 27 July, according to ICIS.

Asahi Kasei plans to continue to run its plants at 70% of capacity in August. The plant has been operating at this rate since July, the source said.

The company has two ACN plants in Japan with a combined capacity of 450,000 tonnes/year.

Its wholly-owned subsidiary, Tongsuh Petrochemical in Ulsan, South Korea, has an ACN capacity of 320,000 tonnes/year.

($1 = €0.82)

By: Helen Yan
+65 6780 4359

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