Acrylonitrile prices touches 9-month high in Europe, US

Acrylonitrile prices rose in Asian markets in the week ended 24 January, tracking higher production costs and tightening supplies. However, trades were scarce amid cautious buying sentiment in the week. In Europe, spot prices for acrylonitrile rose to a nine-month high on tighter supply fundamentals. Meanwhile in US domestic acrylonitrile prices also jumped to a nine-month high on higher feedstock propylene cost. Asian acrylonitrile markers surged US$30-40 with CFR Far East Asia to be assessed at US$1,979-1,981 a ton while CFR South East Asia moved up to US$1,960. In China, the CFR values jumped to US$1,930-2,980 a ton. European acrylonitrile prices were up US$23 at US$1,873-1,878 a ton CIF Mediterranean while US domestic assessment rose US cents 4 on the week to a nine-month high at US cents 101 per pound lb delivered. However, export price assessment remained flat at US$1,860-1,880 a ton FOB USG.

Upstream chemical-grade propylene January US contract was settled at an increase of US cents 4 per pound pegging it at US cents 73 per pound. In Asia, diminishing buying interest in China pushed propylene prices lower although supply tightness persisted. European spot propylene prices rose, as supply tightness prevailed. Asian propylene markers were down US$45-60 with FOB Korea in the range of US$1,384-1,386 a ton, down US$50 from last week while CFR China was at US$1,444-1,446 a ton, down US$55. European spot chemical grade propylene prices moderated Euro8.50, closing teh week at Euro 1,085-1,090 a ton FD NWE, while CIF numbers climbed Euro 16.50 to Euro1,045-1,050 a ton. US spot chemical-grade propylene prices softened US cent 0.25 to US cents 68.50-69.00 per pound.

Surging acrylonitrile prices supported downstream acrylic fibre markets to stabilize this week. Although there were some restocking activities before the Spring Festival holiday, buying interest had weakened. ASF producers continued to keep inventory at normal level. ASF prices in Pakistan and India were on a roll over. Offers for Taiwan-origin ASF were stable at US$2.35-2.40 a kg. In China, offers for 1.5D staple were at US$2.74-2.82 a kg, unchanged from last week while medium-length 3D staple were at US$2.70-2.75 a kg. Indian ASF was priced at US$2.70 a kg, down US cents 4 due to weak INR.

Courtesy – Ynfx Weekly PriceWatch Report