Acetonitrile Prices Edging Upwards in The Global Market Attributing to the Rising Demand from Downstream Segments
- 19-Jan-2022 3:00 PM
- Journalist: Francis Stokes
Acetonitrile prices are rising internationally, despite low petrochemical demand, due to rising downstream demand from the pharmaceutical industry. With the resurgence of covid-19 instances in many regions of the world, the pharmaceutical and solvent industries have been more active. As a result, following a period of stagnation, demand for Acetonitrile has surged once more. Acetonitrile prices in India were reported as INR 300000/MT Ex-Mumbai, while USA quotations for January were heard hovering around USD 1425/MT FOB Texas.
Following the release of the Omicron version, Feedstock Acetone prices in the local market continued to rise, owing to strong demand in Asia and Europe for sanitizer production. Traders have been accepting bids at a premium to avoid any negative impact on customer sentiment in the face of high demand for solvents. Despite the widening demand-supply disparity, domestic dealers were anxious about meeting purchasers' contract purchases and consequently avoided any spot selling. As a result, Acetone prices in India increased by roughly 13%, rising to INR 69190 per metric tonne as on January 7th.
The sector's outlook has improved as lockdown restrictions around the world have been eased. The winter storm that affected chemical supply in Texas, Louisiana, and other parts of the United States, as well as increased crude prices, prompted a price increase. The recent increase in covid-19 cases in South China has prompted rigorous containment measures and slowed port traffic. Since early Q4 2021, Yantian port, one of China's main container handling ports, has been experiencing congestion, resulting in an increase in container freight costs.
According to ChemAnalyst , “Due to extraordinary levels of uncertainty, cost across the supply chain is projected to grow, the prospect of Acetonitrile prices stabilising remains a long way off. Furthermore, because a significant amount of Acetonitrile is imported into India from China, restocking actions by various traders in anticipation of the impending Lunar holidays are expected to keep prices stable in the near term.”