The Acrylonitrile prices rose in the European during March 2025. The supply situation of Acrylonitrile was hampered along with disruptions at major ports like Rotterdam and Le Havre. At the same time, steady demand for end-use materials in the regional automotive sector, geopolitical tensions and potential U.S. tariffs impacted the market. The Acrylonitrile prices are likely to increase further due to increased demand, feedstock shortages, and anticipations of higher freight costs during summers.

Acrylonitrile production faced challenges in the European region, mainly due to a shortage of feedstock Propylene and Ammonia supplies. The feedstock Propylene supplies from the U.S. to Europe dropped during February because of a rise in upstream propane demand. This increase in propane demand was caused by a cold Arctic blast in North America, which led to higher heating fuel consumption. As a result, supply lines were strained, and Acrylonitrile costs increased. At the same time, Ammonia supplies were stable but faced challenges. Production rates slowed down due to rising natural gas prices, which affected supply levels.

Further complicating matters, European ports have been hit by severe weather and labor strikes, particularly at key ports like Rotterdam and Le Havre, which caused significant disruptions, port closures, and delays. The shipping companies rerouted their vessels around the Cape of Good Hope, increasing delivery times and adding complexity to already strained logistics.

On the demand side, Acrylonitrile remains steady in the automotive sector, particularly in the NBR industries. Despite a modest improvement in the Western European automotive market, with passenger vehicle sales rising to a rate of 12.6 million units per year, overall sales volumes fell by 2.6%. Geopolitical uncertainties and the expectation of higher U.S. tariffs are making consumers more cautious. This is affecting their confidence and slowing down growth in the automotive sector.

However, Acrylonitrile demand in ABS industries has taken a hit due to a sharp downturn in the eurozone's construction market, with residential construction particularly hard-hit. Decline in input purchases and ongoing supplier delays are further restricting demand for Acrylonitrile. While most markets are struggling, there is a glimmer of hope in Italy, where the outlook appears slightly more optimistic compared to the broader European downturn.

Acrylonitrile prices in the European region are expected to increase further due to growing demand and challenges in production. The Orders from the Nitrile Butadiene Rubber industries are likely to increase because of the increased need for automotive parts in the automotive industry. However, Acrylonitrile production rates might be hampered due to feedstock Propylene supplies shortages because of rising demand for Propylene from other downstream industries. Buyers might undergo stocking practices in anticipation of potential shortages of Acrylonitrile, which will increase market competition. Additionally, demand from downstream polymer industries is expected to rise, which will put more pressure on the market. With more shipping activity expected in the summer, freight costs are likely to increase, further pushing Acrylonitrile prices higher.