Acrylonitrile’s Prices Show Pessimistic Trend in the US and Europe in May 2023
Acrylonitrile’s Prices Show Pessimistic Trend in the US and Europe in May 2023

Acrylonitrile’s Prices Show Pessimistic Trend in the US and Europe in May 2023

  • 07-Jun-2023 6:14 PM
  • Journalist: Motoki Sasaki

In the USA, Acrylonitrile prices observed a fall during May 2023, as the demand for the product is stale not just in North America but in the European and Asian regions as well.

In the USA, the demand for Acrylonitrile from downstream Acrylonitrile Butadiene Styrene polymer and Acrylic Fibre producers was depressing amidst firm availability of supplies due to restocking practices of materials during April 2023 amid increasing upstream and production costs and concerns regarding the recession. Simultaneously, the inquiries and consumption rates remained limited from Nitrile Butadiene Rubber manufacturers due to moderate activities in the manufacturing sector. Meanwhile, in Europe, the availability of materials is sufficient because of reduced offtakes and stable supply chain activities.

In May, the production costs of Acrylonitrile dwindled during the month globally. The feedstock Propylene prices decreased in the USA amid weak demand from downstream value chains and surplus availability of Propane stocks in the region. Similarly, in Europe, the feedstock Propylene costs shrank, backed by steep falls in upstream Naphtha prices during May due to increased inventory levels and dampened demand from downstream industries amid volatile Crude Oil prices.

Concurrently, In Europe, Acrylonitrile’s key feedstock Ammonia prices have decreased noticeably in the past few weeks due to globally weak demand and consistent plunges in the upstream Natural Gas prices backed by surplus availability and the recent rise in the temperature. Likewise, in the North American region, the Ammonia costs contracted due to a decline in upstream Natural Gas costs by Henry Hub amid a shift in consumption rates from end-users.

According to the ChemAnalyst data sources, during May 2023, the Acrylonitrile prices in the USA fell by 4.6% and were assessed at USD 1430/MT at the end of the month. Similarly, prices of Acrylonitrile in Germany and Belgium decreased by almost 7% and hovered at USD 1450/MT and USD 1540/MT, respectively.

As per the ChemAnalyst estimation, “The Acrylonitrile is likely to remain weak in the upcoming week, and inquiries will remain moderate. The consumption will probably be on the lower side from downstream Acrylic Fibre and rubber producers due to modest manufacturing activities in the textile and automotive industries. On the other hand, the production costs of Acrylonitrile are likely to increase due to estimated increases in the feedstock Propylene costs because of rising upstream Crude Oil prices. On the contrary, the feedstock Ammonia prices will likely remain low due to weak upstream Natural Gas costs and depressing demand from the downstream key consumer Fertilizer industries because of sluggish activities in the agricultural sector.

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