14 December 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--The December European acrylonitrile (ACN) contract price has finalised at a reduction of €20-25/tonne ($26-33/tonne) on lower upstream propylene and ammonia costs, buyers and sellers said on Friday.
The December European propylene contract price dropped by €17/tonne.
Buyers had been targeting reductions of up to €45/tonne because of destocking to lower working capital on year-end balance sheets.
Nevertheless, the fall in demand linked to year-end inventory reduction has been counterbalanced by fewer imports entering Europe from the US, increased consumption from the Asian acrylic fibre market due to restocking, and stronger demand from traders stockpiling material in anticipation of rising prices in January.
European traders are speculating that the tight supply in Asia, coupled with restocking in Europe and an absence of US imports entering the market will push European prices higher in January. As a result, traders are stockpiling material ahead of the New Year.
European December contract prices finalised at €2,070-2098/tonne FD (free delivered) NWE (Northwest Europe).
($1 = €0.76)
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