Increase in USA Acrylonitrile Prices Amid Increase in Demand from Buyers

Texas (USA): The Acrylonitrile price trend showcased bullish movement as prices witnessed an increase of 0.7% in mid-March 2024 amid firm demand from buyers and easing inflation in the region. The availability of stocks was adequate in the market as production rates remained firm in manufacturing units, while offtakes were moderate from buyers.

According to sources, in February 2024, the USA's manufacturing PMI increased and remained above 50 due to escalation in new orders, production, and output rates in the country, indicating further improvement in manufacturing sector activities.

Simultaneously, demand for Acrylonitrile remained consistent from buyers. Orders were firm from Nitrile Butadiene rubber manufacturers as consumption rates increased in the automotive industry amid a 0.1% decline in new vehicles' CPI on a month-over-month (MOM) basis and a rise in production and sales of vehicles during February. Orders were also consistent from ABS industries and Styrene Acrylonitrile manufacturers amid stable demand from appliance manufacturers and an almost 1% decline in CPI of appliances during the past month. Conversely, the textile industry witnessed a slowdown amid a rise in material costs by 0.6% on an MOM basis in February 2024, suppressing demand from Acrylic Fiber manufacturers.

Meanwhile, at the beginning of the month, the Acrylonitrile price trend was stagnant as prices remained unchanged in the USA. Cost support was moderate amid volatility in feedstock Propylene costs due to inconsistent exports to international buyers amid trade problems through canal routes. Simultaneously, cost support was stable from feedstock Ammonia amid moderate demand from buyers. Ammonia inquiries were firm from South American importers due to increased demand for fertilizers, while sluggish from European buyers due to ongoing protests by farmers in the European region. Additionally, the energy industry is at odds over energy security amid the US LNG export pause, impacting Acrylonitrile pricing.

According to ChemAnalyst data sources, Acrylonitrile FOB Texas quotations in the USA witnessed USD 1425/MT at the end of the third week of March 2024.

Estimations suggest Acrylonitrile prices will increase further in the North American region during upcoming weeks due to firm demand sentiments from buyers. Orders are anticipated to increase for stocking purposes from buyers before Q2 2024. Simultaneously, production costs may incline as cost support escalates from feedstock Propylene. Additionally, demand for Ammonia is estimated to rise from fertilizer manufacturers with the increase in temperature in the Northern Hemisphere and crop planting activities, escalating cost support on production costs of Acrylonitrile.