09 August 2013 13:56 [Source: ICIS news]
LONDON (ICIS)--Lukoil’s 150,000 tonne/year acrylonitrile (ACN) plant in Saratov, Russia, is running at full capacity, despite talk in the market of production problems, a company spokesperson said on Friday.
There had been widespread talk in the market of production problems at Lukoil’s Saratov plant. Speculation that Lukoil would be running at 50% of operating rates for the next six weeks had led to concerns that European ACN supply would become tight in September.
“We got quite some requests for spot material that we think is linked to the Lukoil outage – they [traders] expect September and October [demand] to be stronger and they can't get material in the usual places,” an ACN producer said.
The talk of production problems has had little effect on August demand because of traditional end-user holiday outages.
Lukoil’s spokesman denied that there were production problems, adding that there is no maintenance work at the plant scheduled until at least the end of September.
Nevertheless, talk of production issues has in part led to an increase in ACN spot price ideas. Spot bids and offers were at $1,770-1,810/tonne (€1,328-1,358/tonne) CIF (cost, insurance & freight) WE (West Europe) on Friday morning, a $10-40/tonne rise from the previous week.
A €50/tonne increase in the feedstock propylene August contract price further supported ACN spot price rises.
($1 = €0.75)
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