A bullish price trend for acrylonitrile emerged in the North American market due to several key factors. Geopolitical disruptions, rising propylene prices due to supply chain constraints and increased demand for propane tightened the supply of key feedstocks.

Key Takeaways:

• Acrylonitrile prices rose by approximately 9% in February 2025, driven by geopolitical disruptions.
• Strong demand from the automotive and construction sectors fueled market optimism.
• Cornerstone Chemical Company will shut down its Acrylonitrile operations in Louisiana by June 30, 2025, reducing North American production capacity and contributing to upward price pressure.

The U.S. acrylonitrile production remained intermediate, supported by moderate availability of feedstock propylene. However, geopolitical disruptions caused acrylonitrile key feedstock propylene prices to rise, tightening supply chains. Increased demand for propane as an alternative fuel further pushed up propylene prices. Some manufacturers adjusted production to mitigate rising costs and supply shortages, partly due to tariffs.

Concurrently, feedstock ammonia prices declined in early February but stabilized due to rising natural gas prices in the European region and stronger nitrogen pricing. The much-anticipated Gulf Coast Ammonia (GCA) project in Texas, initially set to launch early 2025, has been delayed until Q2, potentially impacting ammonia and Acrylonitrile pricing. The Acrylonitrile prices rose approximately by 9% in February 2025.

On the trade front, the export rates of Acrylonitrile were low to the importers. The U.S. trade deficit widened as exports fell and imports rose to USD 98.4 billion in January 2025. In response, President Trump signed a measure to increase import tariffs to align with those imposed by other countries.

Despite these market challenges, demand for Acrylonitrile remains strong, particularly in the automotive and construction sectors. Vehicle sales increased by 2.8% year-over-year, though a sharp monthly drop of 25.6% was noted. The U.S. construction sector added 196,000 jobs in 2024, although growth slowed in January 2025 due to economic pressures such as rising inflation and high borrowing costs. Still, the sector remains a key economic driver, with future growth potential hinging on monetary policy and the housing market’s trajectory.

In the second quarter of 2025, Acrylonitrile prices are expected to rise, driven by increased international offtakes and heightened procurement demand, which will strain supply and keep the market tight. Additionally, favorable trade conditions in summer would boost trading activity, further fueling demand.

Compounding this, Cornerstone Chemical Company has announced the closure of its Acrylonitrile operations at its Waggaman, Louisiana facility by June 30, 2025, due to financial challenges, including oversupply and rising raw material costs. This shutdown will reduce the North American production capacity. This might tighten supply and contribute towards price pressure on Acrylonitrile in the coming months.