08 October 2012 15:53 [Source: ICIS news]
BUDAPEST (ICIS)--Several global acrylonitrile (ACN) traders on Monday said they are predicting that planned new capacity in Asia will result in an increase in imports into Europe.
The comments came on the sidelines of the 46th European Petrochemical Association (EPCA) meeting in Budapest, Hungary.
The traders predict that new capacity coming on stream in Asia will overcome an estimated 400,000 tonne/year shortfall in the Asian domestic supply/demand balance and result in product, previously exported from the US to Asia, being diverted to Europe.
“Korean and Chinese capacity will increase so there’ll be less imports. In Asia next year, capacity will overcome demand,” a trader said.
Despite weak demand in Europe because of poor macroeconomic conditions, which have limited consumer purchasing power, traders estimate that Europe is structurally short by up to 150,000 tonnes/year. As a result, they expect material that would previously have been sent to Asia to be diverted to Europe.
“Europe is 150,000 tonnes per year short, so more [ACN] will flow to Europe,” another trader said.
The annual EPCA meeting runs from 6-10 October.
($1 = €0.77)
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