For the Quarter Ending June 2023
North America
Acetonitrile prices in the 2nd quarter of 2023 show an increasing market trend in North America, mainly in the USA. At the beginning of the 2nd quarter, Acetonitrile prices decreased consistently in line with the market trend of the previous month. The decrease in its price across the US was mainly due to a significant decrease in downstream demand and a rise in merchant stockpiles. Acetonitrile's decreasing price trend this month is further supported by the lower cost support of the upstream Acetic acid market. According to market analysts, the trade activity from the exporting country in the USA remained below average. Statistics show a decrease of 0.5% in the producer price index (PPI) for final demand, indicating a general decrease in consumer demand. However, by mid-Q2 2023, the consumer price index in the U.S. rose by 0.5 % in May 2023, and Acetonitrile price saw a moderate increase due to a rise in domestic inquiries from downstream pharma, polyacrylamide, and petrochemical industries amid firm availability of inventories as a result of restocking practices until end-June. On the other hand, the depreciation of the renminbi against the dollar has improved the competitiveness of Chinese exports, which may lead to higher sales and profits for Chinese exporters. Suppliers and merchants in the United States benefit from this, as they can purchase goods at lower prices.
Asia Pacific
Across the APAC region, primarily in China, Japan, and South Korea, the prices of Acetonitrile ended the second quarter on a bearish note. Fluctuating upstream acetic acid prices, consistent drops in domestic and overseas inquiries, and weakened trading activity all supported the downward price trend for Acetonitrile during this quarter across the Chinese market. In South Korea, persistently subdued demand sentiment coupled with surplus product availability in the region proved to be prominent factors in pushing prices on the lower side for Acetonitrile throughout this quarter. Also, the Shipments from Asia's fourth-largest economy, yearly global trade, fell by 6 percent in June from a time before in June, narrowing from around 15 percent drop in May, as per the trade ministry. As June concludes, exports to China fell by more than 18 percent, the lowest decline since October, while those to the United States fell by less than 2 percent. While in Japan, despite higher upstream costs, the prices for Acetonitrile kept falling in April. Market analysts assert that the exporting nation's trade activity from Japan, one of the major exports, has continued to be below average. In addition, Acetonitrile prices in Japan decreased, following last month's trend, due to decreased demand from downstream Acrylic Fibres industries. Offtakes from other Pharmaceutical and Petrochemical industries also decreased significantly. In addition, the devaluation of the Japanese Yen against the USD made it more cost-effective to export to importing countries like the USA, China etc. On the upstream market, the continuous decrease of upstream Acrylonitrile prices impacted the downward price trajectory of its by-product Acetonitrile across the region. Due to this continuous decrease across the region, merchants were hesitant to quote newer quotations and preferred to deplete their previous stocks first.
Europe
During the second quarter of 2023, the prices of Acetonitrile across the European region, primarily in Belgium, showcased a consistent decremented trend. Constant drop in domestic inquiries and a significant decrease in imports of raw materials from exporting nations like China kept the market of Acetonitrile on the south side. In the continuation of May, the prices remained on the lower side, coupled with higher stockpiles among the merchants, owing to which they focused on destocking their inventories at a lower rate. Additionally, in the month of June, Consumer Price Index CPI in Belgium decreased to 127.11 points in June from 127.30 points in May of 2023, resulting in its lower price trend. Additionally, upstream acetone and acrylonitrile prices decreased significantly during the last few weeks of June also due to weak demand around the world and steady drops in downstream Natural Gas prices supported by surplus availability, which contributed to the weak market sentiment for Acetonitrile in Belgium market.
For the Quarter Ending March 2023
North America
The prices of Acetonitrile in the North American region plummeted throughout the end of the first quarter of 2023, followed by the trend of the Previous Quarter. This price trend during the first quarter was supported by a consistent drop in domestic demand coupled with higher stockpiles among the market participants. Besides this, Manufacturing continues to contract but not at a sufficiently rapid pace to suggest a recession in the overall economy at this point. Also, the Ocean freight arrangements are reliant on industrial orders, which additionally kept the market sentiments of Acetonitrile on the lower side. Towards the termination of the first quarter, the prices for Acetonitrile continued to remain in the downward direction and were recorded at USD 2510/MT Pharma Grade in North America.
Asia Pacific
APAC region, primarily in China, maintained to demonstrate a weaker market trend for Acetonitrile during the first Quarter of 2023. Since the start of January, the prices continued to follow the trend of the previous month, which was reinforced by lessened uptakes from the downstream pharmaceutical and other sectors. Moreover, weaker propylene costs and ample inventories with wither operation rates further kept its market sentiments on the feeble side throughout the first Quarter of 2023. Besides this, China’s economic recovery, to some extent, is an improvement in its manufacturing activities, however, at a slower pace. Still, the exports remain weak and domestic sales continue to fall, although the rate of decline remains narrowing. With this, the prices of Acetonitrile for Pharma grade were assisted at USD 1831/MT Pharma Grade in the month of March in China.
Europe
In the European region, primarily in Belgium- until the end of the first Quarter of 2023, the prices of Acetonitrile directed a descending trend. Prices of Acetonitrile fell consistently in the month of January on the back of weak downstream demand from various end-user sectors and higher stockpiled inventories. Also, the Upstream acetic acid prices additionally kept the market sentiments of Acetonitrile on the weaker side. Moreover, owing to lessen demand from the downstream sector, the trade activity for Acetonitrile from exporting nations continues to remain on the south side, which has significantly affected the market trend of various sectors. Overall, the prices of Acetonitrile displayed during the end of March were settled at USD 2365 /MT Pharma Grade in Germany.
The prices of Acetonitrile in the North American region plummeted at the end of the fourth quarter of 2022. As with the start of the winter month, i.e., October, the prices witnessed were on the upper side owing to an increase in end-user demand. Inflation during October thus decreased substantially compared to September, even though it remained well above the upper boundary, which affected Acetonitrile's market sentiments. Following mid-q4 in the United States, the prices of Acetonitrile started to decline considerably on account of weaker inquiries and upstream Acetic Acid cost. With the end of the year 2022, the prices declined significantly with stockpiled inventories among the market participants and were recorded at USD 12560/MT CFR Los Angeles in North America.
In APAC region, primarily in China, witnessed a continuous decreasing price trend for Acetonitrile in the fourth quarter of 2022. Although, the prices of Acetonitrile during October declined as the inquiries from the traders reduced considerably. Additionally, Chinese manufacturing activity, one of the important components of the country's economy, weakened steadily with the start of November in the fourth quarter. Low upstream Acetic Acid costs kept the prices of Acetonitrile in the south direction. A rise in COVID-19 cases caused more disruptions in supply within the domestic market and international markets as the temporary stoppage of manufacturing activities within the domestic market reduced the trading momentum across the international market. With this trend, the prices of Acetonitrile displayed during the end of the fourth quarter were assembled at USD 3100/MT FOB Shanghai in China.
The European region, primarily Belgium- during the fourth quarter of 2022, showed a descending trend of Acetonitrile throughout the final quarter of 2022. At the start of October, inquiries inclined again after witnessing a weak trend in the previous month. However, the prices started to decline significantly from early November to later December because of poor uptakes from the domestic market. The supplies were also enough among the market players to meet any immediate order within the region. With this similar trend, the prices of Acetonitrile displayed during the end of the fourth quarter were settled at USD 3100/MT Pharma Grade CFR Antwerp.
