19 July 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European acrylonitrile (ACN) July contract prices have settled at a rollover to a reduction of €5/tonne ($7/tonne), buyers and sellers confirmed on Friday.
This is in spite of falls in feedstock ammonia costs. Tighter supply in the market following recent production problems, which have now been resolved, limited price falls in July.
Ammonia FOB (free on board) Yuzhny spot prices fell by $70/tonne from the 7 June-12 July. The upstream July propylene contract price was settled at a rollover compared with June.
Low availability was partly the result of production problems at INEOS Nitriles' 280,000 tonne/year ACN plant at Seal Sands in the UK in late June. Although the plant is operating at normal rates, inventory levels remain low, a company source confirmed.
Nevertheless, the majority of sources now consider ACN supply and demand as balanced because of weaker demand as end-users enter summer holiday slowdowns.
July European ACN contract prices settled at a pre-discounted level of €1,970-1,990/tonne FD (free delivered) NWE (northwest Europe).
($1 = €0.76)
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