Acrylonitrile prices incline in the US amid plant shutdown and firm demand

The Acrylonitrile price trend showcased bullish movement, and prices rose by 4.2% in the USA in the first half of April 2024. The demand was firm from buyers as the new orders in the country surged in the region, while supply availability was moderately low in the market. Ascent Performance Materials, a major Acrylonitrile producer in the North American region located in Chocolate Bayou, Texas, with an Acrylonitrile production capacity of 49167 TPM, underwent maintenance shutdown from 1st April 2024, impacting the product availability.

At the same time, the inquiries for Acrylonitrile were firm from Nitrile Butadiene Rubber industries, and BMW has set a steady target for 2024 margins as it invests in electric vehicles. US automakers are ramping up hybrid production while electric vehicle sales decline, signaling a growing preference for eco-friendly transportation in the automotive sector. Simultaneously, orders increased from ABS industries as the construction sector experienced optimism as firms seemed more upbeat despite slower growth. Significant changes occurred in construction industry demand, mirroring a steady demand for medical equipment from Styrene Acrylonitrile manufacturers. In March, the price index for medical care commodities rose by 0.2% month-on-month.

Simultaneously, the production costs of Acrylonitrile increased amid the recent surge in costs of feedstock Ammonia. Producers raised their Ammonia quotations due to increased demand from fertilizer manufacturers in the international market, coinciding with the beginning of the planting season. Meanwhile, the cost support was stable from feedstock Propylene amid moderate availability of stocks in the market amid firm demand from Asian buyers. Simultaneously, the energy sector experienced price increases, according to EQT, attributed to geopolitical tensions and positive economic indicators. The Producer Price Index, which measures factory-gate costs for goods, rose by 0.2% in March 2024 from the preceding month, and the CPI index of the country increased by 0.4% on an MOM basis. Moreover, towards the end of the last month, ocean rates declined at Baltimore port after the bridge collapse incident, affecting product supplies in the market. Furthermore, the Federal Reserve Bank maintained stable interest rates, along with an extension of rate cuts into 2024.

Conclusively, as per the ChemAnalyst data sources, Acrylonitrile FOB Texas prices witnessed USD 1495/MT, at the end of the week, which concluded on 12th April 2024.

As per the estimation, the Acrylonitrile orders are anticipated to remain firm from the downstream industries due to the expected rise in demand for end products in the construction and manufacturing sectors. Meanwhile, Acrylonitrile production rates will remain moderate as the industries are confronting an energy crisis due to the subdued Natural Gas supplies and increasing inflation in the country, raising variable production costs. It will raise the market prices of Acrylonitrile in Q2 of 2024.