08 October 2013 13:23 [Source: ICIS news]
BERLIN (ICIS)--The European acrylonitrille (ACN) market is seeing its worst year for margins on record, a producer said on Tuesday.
"2013 is the worst year for ACN ever. Our price in 2013 has been in the red," it said on the sidelines of the 47th annual European Petrochemical Association (EPCA) meeting.
ACN spot prices have remained below feedstock propylene and ammonia costs through parts of 2013 and margins have been limited compared with costs throughout the year.
This is because downstream acrylic fibre demand has been weak. Although contracted volumes have several major end uses - including ABS and acrylamide - spot volumes are predominantly consumed by the acrylic fibre industry.
Market sources said in early October that European October acrylonitrile (ACN) contract prices are widely expected to fall, although discussions are at an early stage because of the drop in the feedstock propylene October contract price.
Buyers are targeting price reductions of at least €40/tonne ($54/tonne), in line with the fall in feedstock contract prices because of weak downstream margins.
One producer is aiming to limit price falls to around €20/tonne because of good demand in most downstream sectors.
However, discussions are not expected to begin in earnest until after EPCA which runs from 5-9 October.
($1 = €0.74)
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