Month: May 2018

ACN Pricing Assessments and Ineos price Revision

Chemical Industry

The arbitrage to send ACN pricing butadiene styrene to European countries from Asia is starting amid falling prices in the latter region, according to data. The ABS FD NWE price was assessed at Eur2,020/mt ($2,183/mt) Wednesday, as the ABS CFR China price was assessed at $1,790/mt.

Acquiring $100/mt to cover freight and additional administrative costs, the import arbitrage windows are wide open. The window has been widening in March as Asia spot prices continued to decline. The CFR China cost offers declined $210/mt from the other day of February.

On the other hand, the FD NWE cost increased Eur120/mt through the same period. November The last time the arbitrage windows was open up was early. Indeed, Eurostat data displays imports in December and January fell 21%.

Strong feedstock costs — mainly butadiene and styrene — directed Asia ABS spot prices soaring between November and February. The ABS CFR China spot price has fallen in March, however, the European spot price resisted the declines amid tight fundamentals.

European demand was great, with 1 seller reporting complete order books. Furthermore, a source has said that Ineos Styrolution had decreased output in March because of minor functions at its Antwerp unit which meant incremental place volume was scarce.

European ABS sellers have faced competition from Southern Korean sellers because they benefit from a free of charge trade agreement between your EU and Southern Korea.

EU imports rose 18% in 2016 consequently of higher deliveries from Southern Korea. While import offers weren’t heard in the European marketplace this week, the open arbitrage might tempt European purchasers to secure product within the next few weeks.

Ineos Nitriles offers lifted its declaration of pressure majeure on European way to obtain ACN pricing after restarting creation from its Seal Sands, Cologne and UK, Germany plants by the end of March, a source near to the company said Tuesday.

“All European vegetation are working and Ineos is now able to supply contractual clients,” the foundation said.
Ineos wasn’t immediately designed for comment on the problem Tuesday. The Seal Sands plant underwent an unplanned shutdown in March pursuing technical issues simultaneously tat maintenance at Cologne was underway.

eeks and affected the whole 280,000 mt/year plant as the maintenance at Cologne was planned to last for 10-12 times on small of the plant’s two lines, accounting for 100,000 mt/year of total CAN pricing and production capacity of 340,000 mt/year.

European ACN pricing was last assessed at $1, Tuesday 650/mt CIF ARA last.
ACN pricing have increased up to now this year amid source shortages in Europe, and also in Asia and the united states.

European ACN pricing hits a six-year low about cheaper US imports
European ACN pricing spot prices fell $32/mt to $1, Tuesday 168/mt CIF MED, a minimal not seen since June 2009.

European ACN prices have fallen within an almost linear fashion since August 2014, where they peaked at a higher of over 2 yrs at $2,060/mt CIF MED.

Producers and traders have got said cheap export prices from the US have already been the cause. The US ACN pricing dropped $20/mt Tuesday to be assessed at $1,050/mt FOB USG. With freight to European countries pegged at $100/mt, the arbitrage from the united states is open.

Despite this, not an excessive amount of ACN pricing which has been heard set from the united states to Europe.
It was the impact of the cheaper US-origin alternative supply getting raised in negotiations that had pressured prices in European countries, sources said.

Substantially lesser feedstock propylene prices in America have pressured ACN pricing in the united states.
“With the propylene cost difference between your US and European countries, it is impossible for all of us to compete,” the maker source said.

European chemical substance grade propylene was assessed at Eur863/mt ($961/mt) FD NWE Friday.
To review, US CGP was at 27.25 cents/lb ($601/mt) FD USG.

With 1.1 mt of propylene and 0.5 mt of ammonia necessary for the production of each 1 mt of ACN pricing, European feedstock costs alone turn to surpass current place prices in the continent. Main European producers have exited the location market amid this insufficient profitability.

“We cannot use the existing $300/mt [or even more] propylene spread [between European countries and the US]. We’d want that to be near to $100 before we restarted production,” a producer resource said.

Th e impact of the decrease in supply from producers is yet to be observed this month, August being truly a traditional maintenance period among derivative producers, sources said.

“Demand in the location market is sluggish, we are competing for potential customers,” a trade supply said.

Isopropyl Alcohol Price Increased by Shell Chemical

Chemical Industry

Shell Chemical will increase US isopropyl alcohol prices by 5 cents/lb effective March 15, the ongoing company said. The company didn’t cite any specific reasons in a letter to customers seen on Tuesday, but Shell does add that the March 15 increases will maintain addition to any previously announced increases for March.

Shell Chemical Joined Others

Shell Chemical substance joins Dow Chemical substance, ExxonMobil Chemical, LyondellBasell and Monument Chemical and with other isopropyl alcohol price suppliers with planned mid-March increases.

Dow Chemical substance, LyondellBasell and Monument Chemical substance are planning to increase US isopropyl alcohol price by 5 cents/lb effective March 15, and ExxonMobil intends to improve prices by 5 cents/lb effective March 11, the firms said in previous letters to customers.

Rising Feedstock

The marketplace has seen pressure from rising feedstock contract pricing and offers tightness, sources have said.
Supply has been referred to as tight over summer and winter on discussions of creation problems and preparations for planned turnarounds.

Feedstock chemical-grade propylene, in addition, has seen the power in the 1st weeks of the entire year, with February agreements settling late the other day near a two-year most of 46.50 cents/lb, 6 up. from January 50 cents.
Supply tightness, feedstock prices pressure US isopropyl alcohol price: sources

Tightness in place availability has maintained strain on the US isopropyl alcohol marketplace, and likely raises in feedstock agreements appear primed to include further pressure, Tuesday sources said.

Rising Demand in America & Europe

Stronger demand in America and Europe, production problems in the next half of this past year and anticipation of the next maintenance in the initial quarter possess combined to restrict place availability, sources said.
Tuesday at 49 US isopropyl alcohol price was assessed.50-50.50 cents/lb ($1,091-$1,113/mt) FOB USG, the best since late November.

“There’s still not really a good deal of extra volume away there,” a distributor said.
Spot prices received minimal rest from lower December feedstock chemical-grade propylene contracts, and objectives for higher January agreements will probably apply further pressure, sources said. We provide daily news and updates on isopropyl alcohol price in India.

December agreements for feedstock chemical-quality propylene declined 4 cents/lb to a nine-month low of 30 cents/lb, but targets for January have needed increases of just as much as 5-7 cents/lb, resources for the reason that market said.

Contract buyers who have a propylene component within their contracts have observed easing in prices this month, but that will be short-lived provided with the January expectations, a source said.

The Substantial Push

“There was a substantial push in the late summertime and early fall to get Isopropyl alcohol price up, and it appears to have organized,” the foundation added.

US Isopropyl alcohol price suppliers and marketers to concern pricing increases in the next half of this past year included ExxonMobil, LyondellBasell, Monument Chemical substance and Dow Chemical, according to letters delivered to customers at that time.