09 August 2013 13:36 [Source: ICIS news]
One buyer said that it has already agreed a figure in principle at plus-€35/tonne, but this was not confirmed on the sell side.
Other buyers are aiming to limit contract price rises to €30/tonne because of ammonia cost reductions and weak demand in Europe.
The August propylene contract increased by €50/tonne. The full cost pass-through is not being asked for because prices of ammonia – ACN's other feedstock – fell during July.
European consumption is low because of traditional downstream summer holiday outages in August.
There had been widespread talk in the market, though, of production problems at Lukoil’s 150,000 tonne/year Saratov, Russia, ACN plant, which sources said had rebalanced the market.
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