Acrylonitrile prices in Europe remained stable in the first half of December 2024 amid tight space availability and rising inventory levels due to shipping capacity constraints and logistical delays.  The demand for Acrylonitrile showed mixed trends, with subdued consumption in the construction sector due to economic challenges and inflation, while automotive demand remained slightly positive amid a rise in car registrations. At the same time, Acrylonitrile production in November 2024 faced moderate availability of feedstock Ammonia.

In the first half of December 2024, the price trend for Acrylonitrile in Europe maintained stability amid tight space availability caused by an 11% decrease in shipping capacity to Northern Europe and constraints in the Mediterranean trade lane. The rise in regional inventory levels, driven by delays and logistical bottlenecks, helped balance supply and demand, preventing significant price fluctuations in the market.

Acrylonitrile production rates in the region remained moderate in December due to the limited availability of feedstock for Ammonia. Additionally, rail congestion caused by a storm on November 27 in northern Germany disrupted feedstock Propylene and Ammonia supplies to the producers, further affecting production levels. These challenges contributed to a more constrained supply environment for Acrylonitrile in the region.

The Eurozone private sector remained in contraction in December 2024, with business activity declining for the second consecutive month due to reduced new orders. Manufacturing production continued to shrink sharply, marking a consecutive month of decline, while services showed modest growth after contracting in November. The downturn was largely driven by continued contractions in Germany and France, though other Eurozone countries saw a solid increase in output.

However, in the second half of December 2024, the Acrylonitrile price trend shifted to a bullish movement, with market players raising their quotations. It is anticipated that Acrylonitrile prices will increase in the upcoming week, driven by heightened stocking practices ahead of the Christmas and New Year holidays, as buyers seek to secure supplies amid tight market conditions, exacerbated by shipping capacity constraints and logistical delays.

Additionally, new orders, including exports, continued to decline, though the rate of contraction eased slightly. The demand for Acrylonitrile, particularly from Acrylonitrile Butadiene Styrene (ABS) and Styrene Acrylonitrile (SAN) manufacturers, remained weak due to several factors. The economic slowdown, combined with a 2.3% rise in Eurozone inflation, higher borrowing costs, and political uncertainty, led to subdued demand for construction materials. As construction activity slowed, primarily driven by elevated borrowing costs, manufacturers of ABS and SAN experienced a decline in demand for Acrylonitrile, reflecting the broader challenges facing the construction sector.

On the other hand, Acrylonitrile demand remained steady from elastomer manufacturers in the automotive sector, supported by a 5.4% month-on-month increase in car registrations in Germany in November 2024. Despite a slight 0.5% year-on-year decline, the automotive sector showed resilience, maintaining demand for Acrylonitrile in automotive applications.