Acetonitrile prices likely to edge higher across China in the upcoming weeks due to increased Acetic acid and Acrylonitrile prices

After the Chinese New Year holidays, several factories across China are gradually resuming their operations, somehow making 2022 high-yielding, a year that started on a note of various uncertainties in terms of global trade, including the unprecedented spread of Omicron variant and geopolitical tensions. Despite all the uncertainties, a number of manufacturers remained occupied filling massive export orders amid holidays and the ongoing Beijing Olympics. However, some market players are worried that the growth of new orders and clients is being disrupted by the pandemic, which could result in a significant slowdown in export growth.

As the Chinese economy is facing downward pressure along with the increasing demand from the domestic as well as international markets, the Chinese Premier Li Keqiang called for further support for companies on Thursday to benefit the economic recovery and supplies to export. Several market players stocked up some raw materials ahead of the CNY in case of price rises. According to sources, in order to meet the rising demand, full operations resumed on February 4, earlier than usual, which seemed like a good signal to kick start this year's trade.

According to a market player, the country's industrial and economic development is likely to face the pressures of shrinking demand, supply shocks, and weakening expectations, and the task of maintaining steady growth remains daunting.

As per ChemAnalyst, the prices of pharma grade Acetonitrile are likely to increase by 2-3% in the upcoming weeks, backed by the increased prices of Acetic acid and Acrylonitrile in the Chinese domestic market. The consumption from the downstream pharmaceutical industries has risen significantly, which has further increased the demand for Acetonitrile across China. Acetic acid prices remained elevated in the market, which has further eroded the margins of Acetonitrile. PetroChina Company Ltd. has started a USD 5.33 billion program to expand the petrochemical capacity at a subsidiary plant in northeast China which could further impact the prices of several commodities, including Acetonitrile in the forthcoming period across the country.