U.S. Acrylonitrile Prices Decrease with Easing Production Costs
- 29-Nov-2022 12:50 PM
- Journalist: Peter Schmidt
According to the latest data, Acrylonitrile prices have consistently decreased in the U.S. for the past few weeks. Recently, the prices of Acrylonitrile FOB Texas settled at USD 1560/MT. Currently, mixed market sentiments are seen for the Acrylonitrile from the downstream industries as demand and consumption are firm from acrylic fiber industries during winter, while the rubber market is in wait and watch.
The recent decline in Acrylonitrile’s key feedstock Ammonia prices due to reduced urea output by fertilizer plants amid harvesting time in the agriculture sector eased upstream cost pressure. Simultaneously decrease in feedstock Propylene prices reduced the upstream cost pressure on the production costs of Acrylonitrile.
Last month a slight improvement in consumption levels from the downstream rubber producers was seen on the back of improved orders for rubber gloves from the healthcare sector after the sudden rise in covid cases in the U.S. and Asian countries. While rising covid cases are still impacting the demand for rubber gloves in the healthcare sector, and offtakes are moderate from the domestic downstream industries and international importers.
Acrylonitrile’s supplies were moderately high, while the existing inventory levels were sufficiently available at low costs amid the increased production of rubber goods in October 2022. According to the U.S. Federal Reserve data, the plastic and rubber product manufacturing index rose from 104.18 in September to 104.52 in October. Simultaneously, the U.S. manufacturing PMI rose during October. However, towards the end of the last month, the demand sentiments shifted, and product prices started declining due to a decline in orders.
As per the sources, last month, Hartalega Holdings Malaysia announced its partnership with UGTC (United Global Trading Corp.) to import and distribute Hartalega’s synthetic nitrile rubber gloves to fulfill the demand needs of the U.S.
According to ChemAnalyst, “Acrylonitrile market to remain within range in the coming weeks in the U.S. market due to anticipated reduction in the production and feedstock prices amid stagnant demand sentiments from the downstream sectors.”