In Asian market there has been slow down in ACN values on back of ample supply in the China market. Chinese domestic market has been lowering on heavy rate in turn curbing the imports as consumers find it too expensive in dollars. Many plants in China has resumed their production after maintenance.
In US ACN prices are likely to reduce further USD 200-300/MT in the second quarter due to reduced feed-stocks costs and global supply.
US spot acrynolitrile was last assessed Tuesday at $1,890/mt FOB USG, down $10/mt week on week. Acrylonitrile is the main feedstock in the production of acrylonitrile butadiene styrene, fibers and acrylic acid, among others. Recent marked drops in feedstock propylene pricing -- US chemical-grade propylene contracts shed a combined 12 cents/lb ($264.55/mt) in February and March -- have significantly lowered ACN production costs, which the source estimated at $1,280/mt for US-origin product. Production restarts slated for April and May in the Far East are also expected to exert downward pressure globally, the source said.
Acrylonitrile export pricing in the US could fall $200-$300/mt, and even to as low as $1,500/mt levels, should propylene remain stable," the source said. Current global pricing, for which the import side ranged from $1,865/mt CIF ARA to $1,980/mt CIF Far East Asia last week, is unsustainable for major demand sectors, the source said.
