NewsFlashIneos settles April ACN $20/tonne up

11 April 2008 04:26  [Source: ICIS news]

SINGAPORE (ICIS news)--Major US acrylonitrile (ACN) producer Ineos Nitriles has settled its April Asia contract up $20/tonne (€12.8/tonne) from March due to rising feedstock costs, a company official said on Friday.

Its April contract was settled at $1,975/tonne CFR (cost and freight).

"Negotiations were tough but we had no choice but to implement a price hike due to the strong propylene market dynamics in the US," the official added.

The April US chemical grade propylene contract was settled 3.5 cents/lb ($77/tonne) higher at 63.5 cent/lb.

The price hike for propylene added about $80/tonne to ACN production costs.

Major ACN producers had hiked April contract nominations to $2,020-2,035//tonne CFR Asia on tight supply and costs pressures from high upstream crude, naphtha and feedstock propylene values.

However, there was stiff resistance from the downstream acrylic fibre (AF) and acrylonitrile-butadiene–styrene (ABS) producers to offers above $2,000/tonne CFR Asia amid a looming US recession, credit crunch and global economic slowdown.

($1=€0.64)

For more on ACN, visit ICIS chemical intelligence

ICIS Copyright © Reed Business Information 2009

Author: Helen Yan
+65 6780 4359

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