The European acrylonitrile spot market was heard maintaining its downwards trend this week on higher European production and imports from the Americas, albeit at a slower pace than in June, sources said on Tuesday.
The European spot price of ACN was assessed at $1,500/mt CIF ARA last week, down $175/mt since June when prices were at their highest since their all-time highs in 2011.
Imports from Brazil and the US Gulf into Europe were heard on Tuesday, although the Brazil parcel was headed to Turkey rather than Northwest Europe, sources said.
Furthermore, ACN shipments from the Americas to Europe were reported to be by producers bringing in product rather than traders.
Traders pegged ACN spot parcels around $1,450/mt CIF ARA on Tuesday, while producers pegged their offers at $1,500/mt and upwards.
"The price has been holding up in Europe but the fiber producers cannot afford these prices," said a trader Tuesday morning.
Sellers, however, argue that current prices are a function of supply and demand over anything else.
"The market is tight to balanced at best. July is pretty dry and demand is good," said a European supplier of acrylonitrile.
A second seller said that even though there was temporary relief from increased European production, the market was still dry.
"There are no deals being done in the spot market, and we feel that some customers are already worrying for August and September when we are in the seasonal height of ACN demand," the second seller said, noting that Lukoil's Saratov plant will undergo maintenance at the beginning of September, which will reduce Russian exports to Europe.
