25 January 2013 21:46 [Source: ICIS news]
HOUSTON (ICIS)--The US acrylonitrile (ACN) spot price was assessed $50/tonne (€38/tonne) higher on the low end of the range because it was believed no sales would be made at prices below $1,900/tonne, market sources confirmed on Friday.
The newly assessed spot price range is $1,900-1,925/tonne, up from $1,850-1,925/tonne.
Propylene costs have sent the cost to produce ACN higher, and market participants believe producers have set their absolute minimum at $1,900/tonne.
In response to the high production costs, producers have reduced their production rates in an attempt to reel in expenses while limiting exposure to the higher-priced propylene.
Market participants said it appears that the reduced production volumes will be sufficient to meet contractual needs, with little to spare beyond that.
The January propylene contract price, which will be taken into account when calculating the January acrylonitrile contract price after the month has ended, increased by 15 cents/lb.
Ammonia spot prices are also a part of the formula used to determine the monthly contract price for ACN.
Spot prices for refinery grade propylene (RGP) have increased to 72.00-73.25 cents/lb this week from 69.00 cents/lb last week.
An initial February contract price nomination for propylene has been offered at an increase of 7 cents/lb over the January contract price of 71.50 cents/lb.
ACN producers in North America include Ascend Performance Materials, Cornerstone Chemical, INEOS Nitriles and Unigel.
($1 = €0.75)
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