Acrylonitrile market follows divergent trends across the globe
- 01-Apr-2022 4:59 PM
- Journalist: Xiang Hong
The market for Acrylonitrile has been depicting contrasting trends at different latitudes on account of distinct upstream cost and downstream demand in different territories. Acrylonitrile, produced from ammoxidation of propylene, is the upstream for ABS and Acrylic fibres. Hence, the fluctuations in the demand or prices of propylene and ABS majorly influence the market for Acrylonitrile. The Asian countries are witnessing a complete turnaround of Acrylonitrile prices from the other parts of the world, making them an exception.
In Asian countries, the price of Acrylonitrile is falling, owing to the ample supply of upstream propylene. The stable to marginally lower demand for Acrylonitrile Butadiene Styrene (ABS) has also supported the price drop of Acrylonitrile in Asia. The numerical data from the continuing week confirmed the reports about this price dip. The evaluated price value implied a decrement of USD 5/MT from Monday to Tuesday in the ongoing week at FOB Korea and CFR China.
The USA and the European countries witnessed a complete reversal in the Acrylonitrile market trend. The prices of Acrylonitrile are soaring in these territories owing to increased Propylene prices. The price value of propylene is growing because of skyrocketing crude oil prices amidst the Russia-Ukraine conflict. Furthermore, the demand for Acrylonitrile Butadiene Styrene (ABS) has grown strong, propelling Acrylonitrile prices. In Europe, several prominent players from the automotive industries have announced production cuts, causing the supply to be constrained a bit, further impacting the Acrylonitrile market.
Altogether, the prices of Acrylonitrile have segregated the market into two parts, depicting opposite trends. According to ChemAnalyst, “The market for Acrylonitrile in different regions would keep contradicting in the upcoming weeks. The Asian countries are likely to witness further price fall of Acrylonitrile due to sufficient inventories. While the USA and the European countries would keep observing surging Acrylonitrile prices due to the hike in propylene prices and the strong ABS demand.”