US ACN: Prices Higher on Firm Demand, Feed Costs

The US ACN price was assessed higher again this week as tight supplies continued to plague the market.

The price continued to be talked between $2,150/mt and $2,200/mt FOB USG, and could climb above $2,200/mt during the next few weeks, a source said. The US price for export was assessed at $2,160/mt FOB USG, up $10 from last week. The price was about $50 below the European price. The Asian ACN price was the highest globally at $2,270/mt CFR FE Asia.

Downstream demand remained unseasonably high, a source said. And stronger propylene prices were expected to provide even more support for ACN.

In the propylene market, refinery-grade prices were heard bid at 63 cents/lb MtB pipe on Monday. There was a force majeure declared on propylene out of Shell's Norco (Louisiana) complex, causing a tightening in the market. But the fundamental cause of propylene's steady climb in recent days remained producers' reluctance to sell amid high expectations for the coming month.

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