Acetonitrile Prices Decrease in the United States, Projected to Remain Bearish in the Coming Months

The price realization for Acetonitrile for both Pharmaceutical and Industrial grades across the United States decreases for the second half of Q3, and this is projected to remain on a bearish side in forthcoming months as well. Insistent inflationary pressures, global economic challenges, and the confluence of reduced demand have kept the market activity for Acetonitrile in the southerly direction. Apart from this, imbalances in supply and demand, fluctuations in the costs of raw materials, global economic uncertainties, and logistical impediments have all contributed to the downward trajectory in the Acetonitrile pricing chart.

As per the market expert’s analysis, the demand outlook for the US economy in August 2023 was uncertain. Considering on a monthly basis, core inflation rises slightly, to 0.3% in August from 0.2% in July. To reduce the excessive inflation, Federal Reserve officials increased the policy rate by 5.25 percentage points over the past 1.5 years. In recent months, they have welcomed signs that the increased borrowing costs have started to show its impact. However, still, the demand from certain sectors witnessed a moderate decline. In addition, the importing activity for Acetonitrile went down considerably during this month due to excessive availability of stockpiles among the suppliers. Additionally, one of the main causes of this decline in imports is the heavier financial burden placed on businesses because of rising shipping costs and surging costs of gasoline and input energy prices. Witnessing this, some companies have opted to reduce their imports due to the slowing economic growth, leading to concerns about future demand for certain products such as Acetonitrile.

After comparing with the month-over-month trend for Acetonitrile, the prices went down steadily, with excessive inventory stockpiles among the merchants across the region. Owing to this, the market players were adopting various inventory reduction of Acetonitrile measures to manage their previous losses and align with market dynamics, resulting in decreased procurement of goods for this quarter. Additionally, the cost of vital raw materials, particularly Acetic Acid and Ammonia, has fluctuated. The spread chart between upstream acetic acid and downstream Acetonitrile was parallelly on a descending side, which added to the sentiment surrounding the depreciation of Acetonitrile prices. However, the upstream Ammonia market in the United States, on the other hand, showed price stagnation for the duration of the current month.

As per the ChemAnalyst anticipation, in the upcoming period, the supply-demand outlook for Acetonitrile across the United States is expected to remain on the pessimistic side due to a continuous drop in overall demand and weaker trade momentum.