16 November 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--European acrylonitrile (ACN) November contracts have settled at a reduction of €40-45/tonne ($51-58/tonne) compared with October because of feedstock cost reductions and weak demand, buyers and sellers said on Friday.
The price fall was sharper than the €20/tonne drop in the upstream November propylene contract price because of low consumption.
"Demand is very bad," one customer said. “Nobody wants to be holding stocks at the end of the year.”
“All [downstream markets] are going into year-end trading patterns,” another buyer said after settling its November contracts last week.
Buying interest is low, not only because of year-end destocking, but also because of poor general economic conditions, which have reduced consumer purchasing power and seasonal demand patterns.
The key cause of lower demand has been the end of the peak downstream acrylic fibre season, several sources said.
“I don’t think it’s year-end so much as seasonality in fibre demand. In November it goes down because it’s the end of the fibre season,” a producer said at the time of finalising its contracts.
The November ACN contract settled at €2,090-2,123/tonne FD (free delivered) NWE (northwest Europe).
($1 = €0.78)
Additional reporting by Jane Gibson
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