25 October 2013 16:03 [Source: ICIS news]
LONDON (ICIS)--European acrylonitrile (ACN) 2014 consumption is expected to grow, fuelled by economic recovery and adoption from new applications, sources said on Friday.
Nevertheless, current volatility and an uncertain macroeconomic framework meant that sources were unable to predict the extent of any increase.
Demand in 2014 will be largely dictated by GDP growth in Europe. Some sources said that they did not expect demand to recover in the first half of 2014 because of macroeconomic conditions.
“I have the strong feeling that in the first six months of next year, nothing will change. The main reason things are slow is purely because of the economic crisis. I think we will... see growth in second half - don't know how much, it's too difficult a question,” a distributor said.
Coupled with GDP recovery, applications such as acrylamide continue to see adoption.
“We certainly hope for an increase, it will be a disappointment to not see any increase, but difficult to say. I think eventually polymers and acrylamide volumes are increasing, it's just who's getting the share. The new areas are the growth areas,” an ACN buyer said.
However, several sources cautioned that it is premature to predict demand for 2014 given the lack of transparency in the current market.
“I don't know what will happen tomorrow,” one trader said.
Sources said that they were unable to predict demand to the end of this year because of market volatility, adding that it is impossible to predict further out.
($1 = €0.72)
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