US ACN market waiting on March propylene contracts to settle

06 March 2013 22:49  [Source: ICIS news]

US ACN market waiting on March propylene contracts to settleHOUSTON (ICIS)--The US acrylonitrile (ACN) spot market is waiting to see what happens with propylene prices later this week before making any major moves, market sources said on Wednesday.

“Buyers are a little scared,” one market participant said. “So we have a little ‘wait and see’ going on.”

But several market sources said that even if prices for propylene – a key feedstock – go down, it may not have much of an impact on US prices, as a result of tight supplies.

“It may not be enough to drive prices down to the $1,900/tonne [€1,463/tonne] range,” which is where a lot of the market would like to see ACN prices, one source said.

The US March polymer-grade proplylene (PGP) contract is expected to settle down by about 5-6 cents/lb ($110-132/tonne). Typically, PGP contracts settle about 2-3 cents/lb above spot prices, which ended February at 70 cents/lb.

There were three spot ACN trades for the week ended 1 March, sources said.

Two parcels for $2,000-2,050/tonne went from Brazil to Europe, a deal that was not confirmed on the buyer side. A third parcel, from the US Gulf to Brazil, was heard sold for about $2,000/tonne, market sources said.

Another producer was said to be negotiating a US spot trade for $1,980/tonne US Gulf.

“There has been some modest spot trading,” said one source. “But I don’t really see a price point breaking until late March.”

Until then, the source said, they see “a pretty hard floor at $1,950/tonne”.

The ACN spot price as of 1 March was $1,900-2,050/tonne, as assessed by ICIS.

US ACN producers include Ineos, Cornerstone, Mitsubishi, Ascend and Pemex.

US ACN buyers include Omnova Solutions and Kaltex Fibers.

($1 = €0.77)


By: Staff Reporter
+44 20 8652 3214



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

ICIS news FREE TRIAL
Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index