Rejig In Rubber Glove Demand Send Optimism in the US Acrylonitrile Prices

New York (USA)- As per the data sources, the recent price of Acrylonitrile in the USA settled at USD 1680/MT, rising by 2% from the ending week of September prices. The prime reason for this revival of prices has been the consistent growing demand from rubber producers on the back of increasing orders for nitrile rubber gloves in the healthcare sector.

Previously a slowdown in the country’s economy was seen last month due to a rise in inflation and soft consumer sentiment. It caused a reduction in manufacturing activities, and the US manufacturing PMI fell to 50.9 in September from 52.8, lowering almost 1.9%. ACN operating rates decreased, and manufacturer Ascend Performance Material was under maintenance during the period. While the available product supplies remained below average but were sufficient amid the weak demand sentiments from the downstream synthetic rubber manufacturers as key MMA producers had curtailed their operation rates.

Now the consumption levels of Acrylonitrile are improving from domestic downstream rubber industries. The demand for downstream rubber improved in the manufacturing and automotive sector. According to the latest federal reserve data, “Plastics and Rubber products capacity index rose to 119.5 from 119.3 in September 2022”, increasing by 0.2%.

At the same time, the prices of feedstock Ammonia also increased on the back of increased demand and consumption levels from the agriculture sector in the planting season, raising the Acrylonitrile’s production costs.

Additionally, rising covid cases has been the key factor driving the demand for rubber gloves in the healthcare sector. Malaysia is the largest manufacturer of Rubber gloves globally, and around 60% of the world’s Nitrile gloves are manufactured in Malaysia. Hartalega is the world’s largest producer of nitrile rubber for the healthcare industry.

As per the latest news, Hartalega Holdings Malaysia has recently announced its partnership with UGTC (United Global Trading Corp.) to import and distribute Hartalega’s synthetic nitrile rubber gloves to fulfil the demand needs of the North American market.

According to analysts, the Acrylonitrile market will likely remain firm in North America, reviving the Malaysian glove manufacturing industry and increasing orders for rubber gloves in the healthcare sector.