10 May 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--Two European acrylonitrile (ACN) initial May contracts have been finalised at reductions of €95/tonne ($123/tonne) and €100/tonne respectively because of falling feedstock costs and weak demand, the buyers and seller involved confirmed on Friday.
Both deals were confirmed with the same seller.
Most buyers had been targeting price falls in excess of €100/tonne because of falls in feedstock costs and weak demand. The upstream propylene May contract price fell by €80/tonne, a cost pass-through of €88/tonne.
Consumption is weak because of poor macroeconomic conditions which have reduced consumer purchasing power.
Although it remains too early for the majority of buyers and sellers to estimate demand in May, several previously said that April was the lowest month for consumption seen this year, estimating a 15% fall in demand compared with March.
Several short working weeks in May, because of public holidays across Europe, are expected to limit buying interest during the month.
Coupled with this, export interest from Asia and the US is also low.
Producers had been aiming to limit price falls as much as possible because of the need to maintain margins. A producer that remains in negotiations said it was discussing settlements at a reduction of €90/tonne.
($1 = €0.77)
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