08 November 2013 10:40 [Source: ICIS news]
LONDON (ICIS)--An initial European acrylonitrile (ACN) November contract has been agreed at a reduction of €35/tonne, the buyer and seller involved confirmed on Friday.
The decrease was the result of a €30/tonne ($41/tonne) fall in the feedstock propylene contract price, representing a cost pass-through of approximately minus €33/tonne.
Spot prices in Yuzhny, Ukraine, of ACN’s other feedstock, ammonia, have fallen by $10-35/tonne since the beginning of October, representing a cost pass-through of approximately €3-13/tonne. The production ratio for ACN uses approximately 1.1 tonnes of propylene and 0.5 tonnes of ammonia to make one tonne of ACN.
A second producer said that it had also agreed one of its November contracts at a fall of €35/tonne. Further confirmation from the buy side is pending.
“Basically, in the present market situation I would like to improve margins, but that's not possible,” a producer said.
($1 = €0.74)
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