25 January 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European acrylonitrile (ACN) January contract prices have settled at a decrease of €20/tonne ($27/tonne) compared with December, buyers and sellers confirmed on Friday.
The price fall was the result of a €13/tonne fall in the upstream propylene January contract price.
“It's better than the raw material pass-through, regaining some margins, so a bit of supply and demand as well,” a producer said.
Ammonia – acrylonitrile’s other feedstock – NWE (Northwest Europe) spot prices have fallen by a euro equivalent of €38/tonne since the beginning of December.
“It's logical, it's not the full cost decrease, but at least the propylene pass-through,” a buyer said.
Nevertheless, ammonia price falls were not factored into contract price falls, because of producers’ needs to re-establish margins and tighter supply as a result of an absence of imports from overseas – caused by reduced operating rates in Asia.
European January contract prices finalised at €2,050-2078/tonne FD (free delivered) NWE.
($1 = €0.75)
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