Acrylonitrile price declines despite rising upstream cost

Asian ACN prices declined US$70 a ton in the second week of December while Southeast Asia fell US$75 a ton on the week. In China, offers for offshore cargoes were down US$70-80 a ton on the week.

Acrylonitrile prices caved in although feedstock propylene and crude oil values were up that week. Downstream demand was stable as acrylic fibre prices held stable, and suppliers ran at 75% capacity. ABS sentiment held firm on cost support, with domestic producers generally offering at stable rate. Acrylamide prices remained steady.

In US, acrylonitrile spot was down with propylene, global prices. Market participants described demand as weaker amid tight supply. Acrylonitrile export assessment fell by a sharp US$60 a ton FOB USG during the week.

European acrylonitrile prices fell under pressure of global weakening as Asian prices declined sharply. Acrylonitrile suppliers will seek to hike prices under increased cost pressure, although spots market will hold firm. European prices edged down US$10 a ton CIF Mediterranean on the week.

Courtesy: Weekly PriceWatch Report