U.S. Styrene Acrylonitrile Prices Witness Price Fluctuations Amidst Long Supply

Texas (USA): In May 2024, the U.S. market for Styrene Acrylonitrile experienced fluctuations, reflecting the intricate interplay of economic elements and industry dynamics. The month commenced with a continued downward price trend seen since the final week of April 2024, with Styrene Acrylonitrile prices hovering around USD 2,240 per metric ton in the initial two weeks. This decrease was spurred by a temporary surplus and weakened demand from key sectors such as construction and automotive, which faced supply chain disruptions and changing consumer preferences.

Nevertheless, the scenario stabilized in the third and fourth weeks, with Styrene Acrylonitrile prices staying at approximately USD 2,200 per metric ton in New York, highlighting the market's adaptability to consistent demand from the packaging and appliance sectors. The steady prices were influenced by an upturn in consumer expenditure and a resurgence of manufacturing activities in these industries.

The balance in Styrene Acrylonitrile prices was backed by numerous factors, specifically the rise in manufacturing input costs. Higher costs for source materials like benzene and ethylene, as well as energy and labour, resulted in inflationary pressures on Styrene Acrylonitrile manufacturers, urging them to maintain selling prices to protect profit margins. In addition, supply chain hurdles and logistical challenges further deepened the cost pressures faced by manufacturers.

By the end of May and the start of June, there was a decline in Styrene Acrylonitrile prices once again, with rates at approximately USD 2,150 per metric ton. This adjustment was impacted by a reduction in demand as consumer spending stabilized and input costs levelled off, driven by the continual decrease in crude oil prices and the easing of supply chain restrictions.

Throughout May 2024, the U.S. Manufacturing PMI indicated robust growth in the manufacturing sector, reaching a two-month high mainly due to an increase in export orders fuelled by strong global demand. However, new orders decreased for the second consecutive month, showing cautious optimism among manufacturers, including those in the Styrene Acrylonitrile production segment, as they navigated volatile market conditions.

As we head into June 2024, the outlook for the Styrene Acrylonitrile market seems gloomy, but there is a possibility of a rebound in business confidence from a five-month low since April 2024, albeit still below long-term averages. Market sentiment for Styrene Acrylonitrile is influenced by concerns related to inflation, interest rates, and geopolitical factors, which could further disrupt supply chains and weaken global demand.

The course of the U.S. Styrene Acrylonitrile market in May 2024 underscored its sensitivity to various factors, from supply and demand trends to cost escalations and evolving economic conditions. Price fluctuations served as a reminder of the delicate equilibrium that manufacturers must maintain, operating amidst uncertain market conditions while aiming to sustain profitability, fulfil customer requirements, adapt to changes in consumer behaviour, and mitigate the impacts of external forces on their businesses.