20 December 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European acrylonitrile (ACN) December contract prices have been settled at increases of €24-28/tonne ($33-38/tonne), depending on starting point, as feedstock cost rises were counterbalanced by low demand, buyers and sellers said on Friday.
ACN demand is weak in line with traditional trading patterns that see players destock in December to lower working capital on year-end balance sheets.
Spot ammonia prices have risen by $15-36/tonne since the beginning of December. The benchmark Yuzhny ammonia price climbed this week as OCI Nitrogen paid $435-440/tonne FOB for a 12,000-tonne cargo for late December/early January loading.
The December propylene contract price rose by €30/tonne. At the broadly accepted production ratio of 1.1 tonnes of propylene to 1 tonne of ACN, this equates to a €33/tonne cost rise from propylene.
December ACN contract prices settled at €2,011-2,029/tonne FD (free delivered) NWE (northwest Europe).
In Europe, ACN contract prices are pre-discounted and typically define key ACN accounts settled on a monthly basis. The general consensus is that the European contract range is representative of the resins industry. This is used as a benchmark for fibre contracts which are held at lower numbers.
($1 = €0.73)
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