Increasing Acrylonitrile Prices in Europe Amid Stressed Supplies

In the European region, the Acrylonitrile price trend revamped and showcased bullish movement in the second week of October 2024. The market players raised their Acrylonitrile quotations amid stressed availability of supplies and moderate offtakes of Acrylonitrile from the market. The product prices were firm and the Consumer Price Index (CPI) for the Euro Area rose by 1.8% in September 2024, down from 2.2% in August, indicating an increase and reflecting a continued upward trend in consumer prices. The trend indicates a cooling inflation environment, which aligns with shifting economic conditions and may impact consumer purchasing power as well as monetary policy decisions.

At the same time, the operating rates were moderately low at manufacturing units after the end of the regional summer holidays. The productions were hampered by the weak supplies of feedstock Ammonia supplies amid an increase in upstream Natural Gas due to an increase in its demand from buyers. It raised the upstream cost support on the production costs of Acrylonitrile. On the other hand, the end of disputes in Libya and the resumed exports from the country improved the availability of feedstock Propylene supplies amid increased refinery run rates. Simultaneously, in September, Europe's Manufacturing Purchasing Manager's Index (PMI) declined from August, reaching its lowest level in nine months.

Meanwhile, buyers were cautiously making purchases as the Acrylonitrile orders were stable from the buyers due to the moderate consumption of adhesive, pipes, and coatings in the construction sector. Construction activities have decreased across all monitored countries and sectors in Europe, leading to a decline in employment and procurement. The latest construction PMI survey indicated a significant slump in eurozone construction by the end of Q3 2024, highlighted by a steep drop in new orders since May. While supply chain performance improved and input cost pressures remained modest, expectations for the future remained pessimistic. The Eurozone Construction PMI Total Activity Index showed a modest increase, suggesting a milder contraction. This continues the decline in activity, now extending over nearly two and a half years in the three largest eurozone economies.

According to the ChemAnalyst data sources, at the end of the week, concluded on 18th October 2024, Acrylonitrile FD Hamburg prices settled at USD 1270/MT.

As per the estimation, in October 2024, the Acrylonitrile offtakes would remain sluggish, and prices would stabilize in the European region. The demand for Acrylonitrile would remain sluggish from downstream rubber industries during the month. At the same time, the production of Acrylonitrile would increase as manufacturers might raise their operating rates, which will improve Acrylonitrile the availability of supplies in the European market.