Published on September 16, 2017
There has been significant rise in Asian contract price for ACN in Asian markets. The hike has been in particular due to gain in the values of upstream Propylene prices in Asian market. CFR South East Asia prices were assessed around USD 1640/MT, gain of USD 70/MT. CFR Far East Asia prices were assessed around USD 1675/MT and increase of USD 70/MT in a week.
This hike has been particularly due to adverse effect of hurricane Harvey. One of the major plant of ACN i.e. Ineos continue its force majeure in Texas.
According to trader the Asian countries are really facing extreme tight supply of ACN. In China many domestic units of ACN has been shut down due to environmental issues and environment protection act. Hike in values will continue to dominate for at least few more weeks.
Many of the China based units like Sinopec Qilu having capacity of 80,000 mt/year and Jilin having the capacity of no1 unit 1,106,000 mt/year were shut down in mid of this year. Restart of these units continues to remain uncertain.
