Acrylonitrile Prices Surge in the US Market Amid Increased Downstream Demand

In November 2023, the Acrylonitrile price trend showcased bullish sentiments amid stressed availability of supplies during the first half and increased consumption rates in the end-user industries. At the beginning of the month, the Acrylonitrile prices rose amid stressed availability of supplies and moderate offtakes from domestic buyers. The production rates were affected due to the weak availability of feedstock supplies. At the same time, the Mississippi River water levels have reduced noticeably, and logistics companies have issued restrictions on shipments through the Mississippi River. It impacted the Acrylonitrile supply rates in the market. At the same time, offtakes were firm from end-user industries due to the high demand for acrylic fibers during winter. Meanwhile, orders were stable from ABS and Styrene Acrylonitrile manufacturers amid moderate inquiries and cautious buying activities from end-user consumers. On the contrary, inquiries were low from Nitrile Butadiene Rubber industries due to the availability of stocks and the decline in procurement activities.

At the same time, the cost support was firm on the prime Acrylonitrile feedstock Propylene amid weak availability due to a decline in Propane stocks. Simultaneously, the cost support was high on feedstock Ammonia amid sluggish availability of supplies and escalation in demand due to increased applications during the winter crop planting season. At the same time, a surge in Natural Gas prices due to increased demand for the winter season had additional effects on the production rates of Ammonia and Acrylonitrile.

During mid-November 2023, Acrylonitrile prices rose again due to improved demand from the polymer industry as the country prepared for Black Friday sales, stressing the feedstock availability and production rates of Acrylonitrile.

Towards the end of the month, the cost support declined from feedstock Propylene due to improvement in the Propane stocks in the region and a decrease in consumption rates as the retailers were preparing for the Thanksgiving holiday. Simultaneously, the cost support eased on feedstock Ammonia due to a decline in production rates amid stressed demand from the fertilizer industry because of reduced application rates in the agriculture sector.

As per the estimation, the demand for Acrylonitrile will remain firm due to the high demand for Acrylic Fibres during the winter in the North American region, and the prices will surge in the US market. Simultaneously, the anticipated increase in feedstock Propylene prices due to weak availability will impact the production rates. Furthermore, the increase in the upstream Natural Gas prices during winter will raise the cost support, and production costs of Acrylonitrile will increase towards the end of the year 2023.