Feedstock, propylene prices shot up this week due to tight supplies and passable demand from downstream market. This was a good support to acrylonitrile market, but prices were sluggish despite the supply was normal. The Asian markets were expecting more cargoes to arrive in late September compared to August. In short term, the markets may see many negative factors amidst stable demand but oversupply would exert pressures and the markets will in a stable-to-weakening trend in coming weeks.

Europe - Acrylonitrile prices fell sharply [ 04 Aug, 2010]

In Northwest Europe, acrylonitrile price fell sharply this week due to the weak demand from downstream market. The price dropped by US$ 300 to US$ 1845 per metric ton Acrylic fiber manufacturers continued to reduce the operating rate due to reduction of orders, while others prepared to close its plant to do maintenance. As per sources, September spot price will further decline.

Source: YnFx.com

Acrylic Chain: Fall in acrylonitrile and ASF prices [ 02 Aug, 2010]

Propylene prices rebounded significantly in Asian markets as activities concentrated on China and supplies situation in Korea. The Asian benchmark number saw the highest weekly gains in recent past and August deals heard done higher than the spot. Steady crude oil and rising naphtha prices attracted buyers.

Despite the feedstock support, acrylonitrile prices dropped and were expected to fall further in August due to weak buying interest. Buyers adopted wait-and-see stance, waiting for more specific price trend in backwardation market and expecting supplies to increase in August. The drop in acrylonitrile prices eased the cost pressure on acrylic fibre market significantly. Demand to was hard to improve as buying interests was poor for spot materials depressing prices further.

Source: YnFx.com