Can the Acrylonitrile Market Continue to Move High?
Introduction: The acrylonitrile jumped and hit a new high. Will the acrylonitrile market continue the uptrend in October 2017?
The acrylonitrile market prices increased greatly in September 2017. Up to September 30, the delivered prices for acrylonitrile in Shandong were RMB 17,000/mt, up RMB 3,500/mt or 25.93% from last month. The self-delivery prices for acrylonitrile in East China were RMB 16,800/mt, up RMB 3,950/mt or 30.74% from last month. The tight supply was the major reason for the great increases. The 130kt/a unit in Shanghai SECCO Petrochemical was shut and underwent maintenance in early September. The output declined by 9kt. The units in Sinopec Qilu Company, Shandong Qilu Petrochemical Qitai Petrochemical and PetroChina Jilin Petrochemical didn’t restart, with the total capacity at 194kt/a. The supply was tight.
As for demand, the operating rate of ABS was high, and the demand for acrylonitrile was firm. However, the demand for acrylonitrile from the acrylic fibers industry was modest. The demand didn’t jump in the peak season. Some producers cut down operating rates. The overall demand for acrylonitrile from the acrylamide industry was limited. Some producers also cut down operating rates.
How about the October?
Supply: The line 3 in PetroChina Jilin Petrochemical will restart, and the overall supply will increase in October. As for the import, the unit at INEOS will restart in October.
Demand: The 60kt/a acrylic fibers unit at Sinopec Qilu Company will restart in H2 October. But the demand will continue to be weak. Other application fields of acrylonitrile willn’t see great changes.
Some acrylonitrile producers published the sales offers, which increased greatly from the settlement prices in September. The market sentiments have improved.
Disclaimer: Echemi reserves the right of final explanation and revision for all the information.