Hamburg (Germany):  From the beginning of the month, the Acrylonitrile price trend has been firm in Europe, showcasing bullish movement amid improved demand, moderate product offtakes, and stressed availability of supply in the regional market. The availability of stocks was inadequate in the market due to disruptions in production and operating rates at domestic Acrylonitrile units, attributed to the low availability of feedstock Propylene. Acrylonitrile prices have increased across the European continent and all major countries have witnessed an increase in the prices.

The availability of feedstock Propylene was impacted by tight availability in the region due to delayed supplies from US exporters, resulting from trade problems through the Suez Canal. Consequently, suppliers raised their quotations by 3.1%. On the contrary, feedstock Ammonia prices continued to decline due to sluggish demand and consumption from agrochemical industries, alongside increased inventory levels in the region.

According to sources, at the beginning of 2024, the Eurozone's manufacturing Purchasing Manager's Index indicated some improvement and rose marginally due to an increase in new orders, indicating a slowdown in the contraction of manufacturing sector activities but remaining below 50 amid a decline in output rates. At the beginning of the month, orders for Acrylonitrile were moderate from Nitrile Butadiene Rubber manufacturers as the Automotive sector witnessed a slowdown amid the recent shortage of semiconductors, leading to a decrease in automobile production. However, Acrylonitrile demand improved from Nitrile Butadiene Rubber manufacturers due to increased stocking practices from buyers amid supply disruptions amid ongoing geopolitical tensions in Europe and the Middle East.

At the same time, inquiries were firm from Acrylonitrile Butadiene Styrene and Styrene Acrylonitrile industries due to increased stocking enthusiasm from buyers amid average availability of stocks and moderate consumption rates. On the contrary, the recent surge in cotton prices impacted the demand for synthetic fibres and led to a decline in offtakes from consumer-end, resulting in decreased demand for Acrylonitrile from Acrylic Fiber producers. Additionally, the textile industry saw a slight decrease in demand from acrylic fibre manufacturers due to a decline in offtakes from consumer-end.

In mid-February 2024, Acrylonitrile FD Hamburg quotations in Germany witnessed USD 1310/MT, according to ChemAnalyst data sources. As per latest estimations, Acrylonitrile prices are expected to increase further in the upcoming week as production rates are likely to remain affected due to delays in feedstock Propylene supply amid further disruptions in supply chain activities. Meanwhile, Acrylonitrile demand and offtakes are expected to remain moderate from downstream buyers.