11 October 2013 10:08 [Source: ICIS news]
LONDON (ICIS)--An initial European acrylonitrile (ACN) October contract price has been agreed at a reduction of €40/tonne ($54/tonne) from September, the producer involved said on Friday.
The buyer involved reported the settlement late on Thursday.
October ACN contract prices have been widely expected to fall because of lower feedstock costs.
The October propylene contract fell by €40/tonne. Ammonia – ACN’s other feedstock – spot prices in Yuzhny, Ukraine, fell by $10-15/tonne between the beginning of September and 4 October.
Buyers had been targeting price reductions of at least €40/tonne, in line with the fall in feedstock contract prices because of weak downstream margins.
One producer was aiming to limit price falls to around €20/tonne, because of good demand in most downstream sectors.
Buyers confirmed that they had received starting offers from producers at a reduction of €20/tonne.
Negotiations are ongoing.
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