Acrylonitrile Prices Drop in Europe Due to Bearish Demand
Acrylonitrile Prices Drop in Europe Due to Bearish Demand

Acrylonitrile Prices Drop in Europe Due to Bearish Demand

  • 30-Jul-2024 6:11 PM
  • Journalist: Francis Stokes

The European market players reduced Acrylonitrile prices by 4.4% during July 2024 to boost sales amid ample supply availability. The demand for Acrylonitrile was sluggish from the downstream Acrylonitrile Butadiene Styrene manufacturers because of the low consumption of pipes, fittings, and construction materials in the construction sector. Simultaneously, the supply rates were moderately low to the importers, which raised Acrylonitrile inventory levels in the regional market.

The decline in the construction sector was notable, with housing market prices decreasing by 5.7% year-on-year. Major cities experienced notable declines, with single and two-family homes falling by 9.5% and apartments by 4.6%. Statistics Deutschland reported a 5.7% decrease in residential property prices for the first quarter of 2024 compared to the previous year, marking the sixth consecutive quarter of price drops. Additionally, residential properties were 1.1% cheaper in early 2024 compared to the fourth quarter of 2023, underscoring the persistent challenges in the housing market. Consequently, manufacturing rates decreased, and at the beginning of the third quarter, the eurozone manufacturing sector experienced a downturn, with a drop in the manufacturing Purchasing Manager’s Index during July 2024 due to a sharper decline in new orders and rising costs. However, the automotive sales improved in Germany during June 2024 by almost 26% from the previous month. However, in the first half of 2024, electric vehicle (EV) sales in Germany declined by 16.4%, with Tesla experiencing a substantial sales drop of 41.6%. Consequently, the consumption of Nitrile Butadiene Rubber remained moderate in the Automotive sector. It kept the orders for Acrylonitrile stable from Nitrile Butadiene Rubber manufacturers.

At the beginning of July 2024, Acrylonitrile supplies were adequate to meet market demand, and product offtakes from the market remained moderate. At the same time, cost support decreased again on feedstock propylene due to increased supplies due to shrinking offtakes from Propylene Oxide and other downstream industries. It reduced the production costs of Acrylonitrile. However, cost support improved from feedstocks like Ammonia and Propylene in the second half of the month due to increased procurement activities ahead of the summer holidays in the region.

Conclusively, at the end of July 2024, Acrylonitrile FD Hamburg prices witnessed USD 1400/MT, according to the ChemAnalyst data sources.

According to ChemAnalyst, Acrylonitrile prices are expected to rise in the European region during the first half of the third quarter of 2024. In Europe, production is currently affected by labor shortages during the summer and insufficient availability of feedstock propylene. As a result, inventory levels of Acrylonitrile are anticipated to decrease due to increased demand.

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