Acetonitrile prices elevating skywards in the global market allocating to surged demand from the downstream sectors
- 23-Mar-2022 2:04 PM
- Journalist: Bob Duffler
Acetonitrile prices have been soaring in the global market due to growing demand from the pharmaceutical sector. Due to the resurgence of Covid-19 cases in many regions of the world, demand for Acetonitrile inclined in the pharmaceutical and solvent industries. As a result, after a period of stagnation, Acetonitrile demand has risen once more. Acetonitrile prices in India were assessed at INR 296180 /MT Ex-Mumbai, while quotations in the United States for March were reported at USD 3295/MT FOB Texas.
The ongoing conflict between Russia and Ukraine has been markedly affecting the production rate and operational costs of various commodities, including feedstock Acetone manufacturing. Due to the rising value of upstream crude oil, many downstream manufacturers are facing difficulties in production. As a result, the crisis in Ukraine threatens to severely disrupt an already stressed supply chain.
Feedstock Acetone costs in the local market have continued to grow since the advent of the Omicron sub-variant, owing to the increasing demand for sanitizer manufacturing in Asia and Europe. In the face of increased demand for solvents, traders have been accepting bids at a premium to avoid any negative influence on customer sentiments. Despite the expanding demand-supply gap, domestic dealers were concerned about fulfilling clients' contract purchases and avoided spot selling. As a result, Acetone prices in FD Karlsruhe Germany climbed by nearly 3% in March, reaching USD 785 per million tonnes.
According to ChemAnalyst, "Due to unprecedented levels of uncertainty, costs across the supply chain are projected to grow, and the chance of Acetonitrile pricing stabilizing is still a long way off. Furthermore, because a significant volume of Acetonitrile is imported into India from China, freight charges have increased due to congestion in the Yantian port. As a result, Acetonitrile prices are projected to rise in the near future."
