05 April 2013 15:48 [Source: ICIS news]
LONDON (ICIS)--European acrylonitrile (ACN) spot prices have fallen $120-125/tonne – or 6% – in the past four weeks because of poor downstream demand for acrylic fibre and low-priced offers from overseas, buyers and sellers said on Friday.
Spot ACN prices fell by $50/tonne this week to $1,800-1,850/tonne (€1,386-1,425/tonne) CIF (cost, insurance and freight) W (west) Europe.
Demand for acrylic fibre is low because of poor macroeconomic conditions. Although market activity has been limited this week by the Easter holiday period, many sources said that the weakness in buying interest is underlying and they are not expecting consumption levels to increase when buyers return to their desks.
It is too early for market estimates of demand in April, but demand for acrylic fibres in the first quarter of 2013 has previously been estimated by the market at up to 30% below the same period in 2012. The majority of acrylic fibre demand is being satisfied on a contract basis.
ACN spot demand is also weak in Asia and the US. As a result, importers are receiving an increasing number of offers from overseas sellers looking to offload material at distressed prices.
In Asia, prices on offer are as low as $1,700/tonne CFR (cost & freight) India, opening arbitrage opportunities with Europe.
($1 = €0.77)
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